Lockdown powers Electrolux growth

Lockdown has driven a lift in sales of ovens, cookers and vacuum cleaners.

In a briefing to US analysts, Mr Samuelson highlighted the company’s better sales performance in Australia during the coronavirus pandemic.

The boss of Electrolux, one of the world’s largest appliance makers, has highlighted Australia as a key growth market as consumers in lockdown increasingly turn to home cooking and cleaning, which have driven a lift in sales of ovens, cookers and vacuum cleaners.

Bolstering the sales of such items, including washing machines, has come from the federal government’s JobKeeper stimulus package as well as superannuation withdrawals, amounting to more than $25bn.

Electrolux president and chief executive Jonas Samuelson said its sales in Australia had strengthened in March and April and kept on improving into last month, with the manufacturer also able to push through better prices in the recent quarter.

The upbeat and bullish prognosis of the Australian market from the Swedish electrical giant mirrors similar comments from key whitegoods retailers in the local market such as JB Hi-Fi, The Good Guys and Harvey Norman, which recently provided trading updates that revealed a roaring trade in goods such as fridges, freezers, kitchen equipment and TVs.

In a briefing to US analysts, Mr Samuelson highlighted the company’s better sales performance in Australia during the coronavirus pandemic.

“In Australia, which had imposed fewer restrictions and kept doors open, market demand was strong throughout the quarter and improved further in June,’’ Mr Samuelson said.

As witnessed by most retailers, there has been an increased focus by consumers on home cooking, as well as cleaning, with that trend also showing up in the recent trading reports from supermarkets such as Woolworths and Coles.

“Key drivers are that people spend increasing time at home and focusing more on cooking and cleaning, but also government stimulus packages, giving allowances and grants for renovation,” Mr Samuelson said.

“Unfortunately, authorities in Australia in early July imposed new restrictions in parts of the country. We had strong growth in our important Australian market, not just volume driven, but also price increases contributed. I’m very pleased to see that the launch we made in the second quarter of cooking products under the Westinghouse brand in Australia gained good traction and contributed to improved product mix.

“Our Electrolux-branded products launched last year are also performing very well.”

According to the latest financial accounts lodged with the corporate regulator, Electrolux Home Products posted flat revenue last year of $828.9m.