Foreign exchange risk
Electrolux Professional’s solutions and products are manufactured in thirteen facilities located in eight countries around the world and sold in approximately 110 countries. Accordingly, the Group is exposed to currency risks. Foreign exchange risk is defined as the risk that fluctuations in currency exchange rates have a negative impact on the Group’s financial position, profitability, or cash flow and includes transaction exposure and translation exposure.
Sensitivity analysis of major currencies
| Currency | Change | Profit or loss impact 2024 | Profit or loss impact 2023 |
|---|---|---|---|
| USD/SEK | -10% | -95 | -92 |
| GBP/SEK | -10% | -25 | -23 |
| EUR/SEK | -10% | -47 | 8 |
| JPY/SEK | -10% | -17 | -5 |
| DKK/SEK | -10% | -11 | -11 |
| TRY/SEK | -10% | -9 | -6 |
| NOK/SEK | -10% | -11 | -8 |
| CZK/SEK | -10% | -3 | -4 |
| AUD/SEK | -10% | -1 | -3 |
| THB/SEK | -10% | 38 | 21 |
Interest rate risk
On the basis of 2024 borrowings with an average interest fixing period of 1.3 years, and considering that the amount of loans outstanding as at December 31, 2024 was approximately SEK 2.9bn, a 1%-point shift in interest rates would impact the Group’s interest expenses by approximately SEK 14m. This calculation is based on a parallel shift of all relevant yield curves (EUR and SEK) simultaneously by one percentage point.