Electrolux plans to sell Zanussi brand

Swedish home appliance maker Electrolux announced plans to sell non-core assets worth about SEK 10 billion ($977.46 million). About it says in the company’s quarterly report.

The company’s materials say that preparations are underway for the sale, including the Zanussi brand, as well as the production of water heaters in Egypt and South Africa. Electrolux President Jonas Samuelson explained that the businesses are profitable, but they do not fit into the company’s core strategy to give them the attention and investment they need.

According to Electrolux’s report, the company posted a net loss of SEK 648 million in the second quarter. Revenue in the reporting period reached SEK 32.65 million. The company explained that weak market demand and switching consumers to lower prices led to an 8.4% decline in sales.

Electrolux suspended work in Russia shortly after the start of a special operation in Ukraine. In July 2022, the company transferred the assets of its professional division Electrolux Professional to management. And in September, she announced her final withdrawal from the Russian market and the sale of the business to local management. Zanussi is an Italian company that was bought out by Electrolux in 1984. The company manufactures household appliances, including washing machines, dishwashers, refrigerators, and vacuum cleaners. In Russia, the Electrolux and Zanussi brands were included in the list of goods subject to parallel imports.