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Electrolux Professional reveals fortunes of first pandemic year

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Electrolux Professional’s foodservice division aims to deliver profitable growth through product innovation and operational excellence.

Electrolux Professional has revealed how the pandemic initially impacted its UK foodservice division.

As the business publishes its annual report a year in arrears, its 2020 document has only just been uploaded to the Companies House website.

In the 12 months to 31 December 2020, Electrolux Professional’s foodservice department accrued £10.4m, a 27% dip from the previous year’s £14.2m.

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Operating profit was impacted even more sharply, down by 50% to 0.9m from 2019’s £1.8m.

Darren Lockley, head of region UK and Ireland at Electrolux Professional analysed within the report: “The demand for commercial equipment was slowly but steadily growing in recent years prior to the Covid-19 pandemic, and this market demand was linked to a number of factors including how many commercial operations are open and active, how many new projects are underway, and the heavy use of machines during usual opening hours requiring service and/or replacement equipment.

“Covid-19 has had an impact on a large proportion of those businesses, closing many in the food industry for a period of time, and those that stayed open served fewer customers putting less strain on the equipment. Demand for products and service calls dropped severely during full lockdown from March 2020 and again at the end of 2020.”

He reflected: “The foodservice sales performance weakened reflecting the challenges of Covid-19 and country-wide lockdowns. Many customers in the food preparation and similar industries were hard hit by the restrictive measures from March 2020 which lasted on and off throughout the year.

“This drop in sales resulted in operating profit reductions due to unavoidable fixed and running costs, some of which was softened by government furlough support, and effective cost management.”

Lockley concluded: “The business continues with the strategy to deliver profitable growth through product innovation, operational excellence and to be the industry leader in offering sustainable products.”

Tags : businessElectroluxElectrolux Professionalfinancial resultsfinancials
Clare Nicholls

The author Clare Nicholls

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