Another record year for Elgiganten

Elgiganten announced in July that the 2021/2022 financial year was yet another record year, summed up by an improvement in results across all channels.

Sales revenue increased by 5 percent to SEK 16.7 billion and operating profit ended at SEK 386 million, an increase of 7.2 percent compared to the previous year.

– We are summarizing a year that we thought would challenge us to continue to increase on top of the extreme growth year of 2020/2021. However, it has been clear during the year that customers' need for electronics and kitchen products has continued and that Elgiganten is growing strongly in most segments. Elgiganten is strengthening its position in all channels and improving its results further, which is something that we are both proud of and humbled about, says Niclas Eriksson, CEO of Elgiganten.

The increase that Elgiganten has made within its categories comes from their focus areas of corporate sales, kitchens, services and gaming. Elgiganten reports an increase in corporate sales of a full 17 percent during the year. The focus on kitchens with Elgiganten's own brand Epoq has continued to develop strongly and has grown by 37 percent. The third focus area is services in both physical channels and in the home, which have increased by 10 percent compared to the previous year. Despite extreme increases last year, gaming is growing further by 15 percent.

Clear effects of the pandemic

The sales results continue to show clear effects of the pandemic. Products connected to home offices increased further compared to the previous financial year. But many other areas are also developing very strongly. Sales of robot vacuum cleaners doubled in number compared to the previous year and a total of 57,100 were sold. Being able to cook both good food and simplify cooking has also been important when spending more time at home. Elgiganten managed to sell 45,000 air fryers, which also corresponds to a doubling from the previous year.

– During the pandemic, we were forced to find new solutions to cope with our everyday lives and our work. What we can clearly see is that these behaviors and working methods have now become more fixed routines. The home office is here to stay and we are expected to be both flexible and connected at all times. At the same time, many have discovered how new types of products such as robot vacuum cleaners, robot lawn mowers and slow cookers simplify everyday life. In terms of turnover, the development of the last two years has caused digital development to jump forward 2-3 years in time. Electronics has never been as important as it is now, says Niclas Eriksson.

More information in Elgiganten's press release here, as well as in Elgiganten's year-end report for the year 2021/2022 which can be downloaded as PDF here.

Text: Ola Larsson

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