Electrolux Professional AB (publ)

Recommendation history

• Q3 2022HoldHold: Electrolux Professional delivered a strong Q3, with 11.4% EBITA margin, more than SEK300 million EBITA, and year-to-date EBITA up 65% to over SEK800 million. Pricing is now offsetting material inflation and demand remains resilient, but the investment case is constrained by weak cash conversion, operating working capital up roughly SEK1.1 billion year over year, 2.3x net debt/EBITDA, and rising recession risk—especially as European order intake softens.
• Q1 2022HoldHold: Q1 showed strong recovery, with Food & Beverage sales up 76%—roughly half organic and half from Unified Brands—and EBITA more than doubled year over year; reported EBITA margin was 9.5% and underlying margin 10%. The bull case is resilient demand and pricing action, but the SEK70 million Q1 material/logistics cost gap, negative cash generation and substantial second-half uncertainty mean the margin recovery is not yet proven.
• Q4 2021HoldHold: Q4 showed strong recovery, with 14% organic growth, like-for-like EBITA of approximately SEK 210 million and a margin near 10%, while 2021 cash flow exceeded SEK 1.1 billion. The recovery, record order stock and Unified Brands acquisition support the bull case, but Q1 faces a SEK 60–70 million price-cost headwind, significant acquisition amortization and continued component inflation; management offered no timing for its 15% EBITA-margin target.
• Q3 2021HoldHold: Q3 showed strong recovery, with roughly 13% organic growth, 10.3% EBITA margin, SEK 400 million quarterly cash flow and net debt near zero. The record backlog and North American momentum support the bull case, but Q4 faces a disclosed SEK 20–25 million year-over-year gross-margin hit from material and component costs, additional unquantified supply-chain inefficiency, and an acquisition whose profitability management would not disclose.
• Q2 2021HoldHold: Electrolux Professional showed a strong cyclical recovery, with Q2 EBITA margin at 10.1%, operating cash flow of SEK 223 million and net debt at only 0.5x EBITDA, but sales remained 15% below Q2 2019. The recovery and order intake are encouraging, yet management acknowledged that order backlog may be inflated by pre-price-increase buying and component scarcity; Q3 will still carry old-price orders while the pricing benefit is expected mainly in Q4.
• Q1 2021HoldHold: Q1 remained weak, with sales down 21% and EBITDA margin at 6.2%, while recovery indicators improved late in the quarter. March and April order intake exceeded net sales, but volumes remained below 2019, temporary subsidies are fading, and raw-material and project-price pressure could offset the recovery.
• Q4 2020HoldHOLD: Q4 sales fell 13.2% and EBITA declined SEK 40 million, although the 7.3% EBITA margin held broadly stable and cash flow was strong at SEK 460 million; net debt fell to SEK 0.5 billion. The recovery case rests on reopening-driven Food & Beverage demand and structural savings, but Q1 remains challenging, Beverage is severely exposed to lockdowns, and management provided no firm earnings guidance.