EXCLUSIVE:Electrolux OZ Revenues & Profits Fall, But They Did Make Profit Switching To New Auditors
Despite revenues of close to a billion dollars in the Australian operation Swedish appliance Company Electrolux Home Products, has only managed to deliver a $70.24M profit, with turmoil appearing to have affected the Companies performance as the business churns through sales staff, and senior management.
Speculation is also rife that the parent Company is back talking to Chinese Company Midea who insiders are telling ChannelNews want to take over the Westinghouse business over globally, according to sources in China, the move could affect Electrolux sales in several Countries.
In Australia Westinghouse is a major part of the Electrolux operation.
According to their latest financials the Company saw revenues fall from $950.7 million to $932.3 million according to returns filed last month for the 2022 calendar year.
Profit for the 2022 year came in at $70.2 Vs $118.4M in the prior year.
Profit before tax fell from $136M to $111M despite the business lifting their marketing expenditure from $65.5M to $73.6M.
The business that is also struggling to deliver in 2023, saw profits fall from $95.08M to $79.18M.
In Australia a switch to new auditors saw the business which previously engaged Deloitte Touche Tohmatsu reduce audit payments from $410,996 to $251,965, the new auditors are PWC Australia who are currently the subject of investigations by the Australian Federal Government.
In the last quarter Electrolux global reported that during the last quarter, consumer demand in the Australian market fell compared to what they described as strong demand in the corresponding quarter 2022.
Management claimed that consumer confidence and purchasing power remained negatively affected by higher interest rates and general inflation.
Reduced purchasing power continued to show in more consumers shifting to lower price points, and promotional activity increased.
At this stage sales have declined 10.7% driven by significantly lower volumes mainly due to the weaker consumer demand, with consumers trading down, and amplified by retailer inventory reductions.
Another problem for the business is New Zealand where competitors have stripped market share with both revenue and profits falling.
In New Zealand Electrolux Home Products saw revenues fall rom $89.5M to $70.9M.
As a result of inflation pressures Electrolux whose staff in Australia don’t think much of the senior management team, with their local 2023 survey of how staff feel about management revealing that 75% of the participants were not impressed.
In Australia the business has resorted to price rises in an effort to deliver profitability.
Globally the Company is struggling with sales falling 8.8% in the last Q3 2023 quarter, with the business resorting to promotions to generate sales.
Global performance is also struggling as the below chart reveals.