STOCKHOLM, September 25, 2020 / PRNewswire / – After evaluating the financial situation of the company and the impact of the coronavirus pandemic, the Board of Directors of AB Electrolux has decided to propose a dividend of 7 SEK per share for fiscal 2019. Electrolux recorded a substantial recovery in its earnings and cash flow in the third quarter, with pent-up demand and government stimulus programs impacting consumer habits and thus driving growth. positive in all areas of activity.
At March 23, 2020, the board of directors withdrew its 8.50 SEK dividend per share proposal for the 2020 AGM, given the then considerable uncertainty relating to the medium-term effects of the pandemic. Since then, however, as disclosed in the second quarter report on July 17, market demand has started to recover. In line with the outlook, demand remained strong in the third quarter. Electrolux estimates that the negative impact initially noted related to the pandemic will be largely recovered in the operating result for the nine-month period ending September 30, including a strong improvement in cash flow. As for the fourth quarter, visibility remains limited as demand may be affected by several factors – both positive and negative – but at present Electrolux anticipates a gradual normalization of financial performance.
The Board of Directors has therefore concluded that a dividend can be proposed without jeopardizing the financial situation of Electrolux. He will convene an Extraordinary General Assembly on November 3, 2020, to vote on a dividend proposal for the 2019 financial year 7 SEK per share, payable in one go. The Board will also propose that a long-term performance-based action plan for 2020 be implemented in accordance with its original proposal for the 2020 AGM.
The Extraordinary General Meeting will also rule on a proposal from the Board of Directors to include in the articles of association the possibility of allowing postal voting and obtaining proxies before the General Meetings. Further details regarding the Extraordinary General Meeting will be provided shortly in a separate notice for the meeting.
Electrolux’s report for the third quarter of 2020 will be published on 23 october 2020 around 0800 CET. The company will then provide a market update and business outlook for the full year of 2020.
This is information that AB Electrolux is required to make public under the EU Market Abuse Regulation. The information was submitted for publication, through the contact person indicated above, at 08:30 CET on September 25, 2020
For more information, please contact:
Electrolux Press Hotline
+46 8 657 65 07
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