Despite the impressive showing the company recorded in the fourth quarter, Electrolux has refused to give a definitive projection for this current fiscal year.
Swedish multinational home appliance manufacturer, Electrolux AB (STO: ELUX-B) has released its Q4 2020 report with a remarkable increase in the firm’s organic sales. According to the detailed press release issued by the company, Net sales for the company within the quarter came in at 33.902 billion Swedish kronor, in comparison with the 32 billion Swedish kronor reported in the year-ago period. The stock price hasn’t reacted to the news and remains at the same levels.
Electrolux was also impacted by the coronavirus pandemic as key operations were impaired as a result of the stiffened global supply chain network. However, the strong sales reported in the fourth quarter was driven by the need to revamp homes with new appliances.
In addition, Electrolux reported a tremendous growth in Q4 in its operating income which comes at 2.498 billion Swedish kronor as against the 960 million kronor reported a year ago.
“I am proud of how we as an organization have navigated this challenging year with a strong focus on health and safety. For me it confirms that we have the right strategy and culture in place, allowing us to quickly act on challenges as well as seize opportunities. As the pandemic continues into 2021, we will continue to create value – safely and sustainably,” said Jonas Samuelson, Electrolux President, and Chief Executive Officer.
The shares of Electrolux is currently down 0.78% to 204.10 Swedish kronor per share at the time of writing. The hopes of anticipating normalization in consumer behavior in the coming months are expected to help keep Electrolux optimistic of a better 2021 fiscal year.
While each of the company’s business segments saw increased growths, the firm saw its Income for the period pegged at 1.860 billion Swedish kronor against 366 million Kronor in the year-ago period and earnings per share coming at 6.47 kronor to 1.27 kronor per share.
Electrolux Is Modest about Future Growth Despite Strong Q4 Results
Despite the impressive showing the company recorded in the fourth quarter, the firm has refused to give a definitive projection for this current fiscal year. However, the firm believes the consumer demand in the first half of the year will be healthy.
The CEO noted that “looking into 2021, visibility remains limited due to the ongoing pandemic. However, for the first half of 2021, we anticipate that the strong consumer demand from increased home-improvement spending experienced during the second half of 2020 will remain to some extent.”
As a cap to its performance, the company is proposing a dividend of 8.00 Swedish kronor against the 7 kronor per share in the year-ago period. The proposal involves the payment of the dividends in two equal installments.
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