Appliance manufacturer Electrolux reported net sales increased to SEK 30,303million, corresponding to growth of 39.1% in its Q2 interim report.
Its operating income increased to SEK1,983million, with operating cash flow after investments of SEK 1,456million.
President and CEO of Electrolux Jonas Samuelson commented: “A year ago, restrictions relating to the coronavirus pandemic resulted in significant volume drops, which we partly mitigated through temporary cost actions.
“Compared to the second quarter of 2019, organic sales growth was 16.4%.”
However, the company pointed to the continued challenge of supply, as Jonas Samuelson stated: “The market for electronic components is expected to be somewhat more constrained in the third quarter and, hence, we anticipate challenges to fully meet the market’s product mix requirements.
“We continue to have a close dialogue with our suppliers to mitigate these supply challenges as we expect the situation to remain uncertain for an extended period of time.”
Samuelson also warned of planned price hikes to offset the increased cost in raw materials: “We have announced and started implementing additional price increases, taking effect gradually throughout the rest of the year.
“This as costs for raw materials, electronic components and logistics are increasing further, resulting in increased pressure on cost efficiency and external cost factors.”
Electrolux expects normalisation of market demand during the second half of 2021, with “significant” regional variances during by the pandemic.
It also stated global supply challenges could have a higher impact in the second half of the year.
Maintaining its 2021 full year regional market outlook, Samuelson warned visibility remains limited.