INTERIM REPORT JANUARY – MARCH 2024
Well positioned for the gardening season
First quarter 2024
- Net sales decreased by 14% to SEK 14,719m (17,167). Changes in exchange rates had a neutral effect.
- Planned exits of low-margin petrol-powered business impacted with -4%. Organic sales* decreased by 11%.
- The Gardena Division achieved an organic growth of 2%.
- Operating income was SEK 1,930m (2,364) and the operating margin was 13.1% (13.8).
- Earnings per share before dilution amounted to SEK 2.31 (2.90) and earnings per share after dilution amounted to SEK 2.31 (2.88).
- Cash flow from operations and investments was SEK -1,057m (588). Direct operating cash flow was SEK -1,614m (-239), impacted by the planned reduction of trade receivables financing.
- Husqvarna Group acquired ETwater – expanding the Gardena Division’s commercial irrigation offering in North America, see page 7.
Well positioned for the gardening season
“As the first quarter progressed, which is a sell-in period, sales gradually improved. We went from a cautious start among our trade partners, to a more favorable development as the gardening season now begins. The Group’s organic sales declined by 11% during the quarter, coming from a record first quarter last year. The operating income amounted to SEK 1,930m (2,364). Our cost savings program is progressing as planned, with savings of SEK 185m in the quarter.
The Gardena Division achieved organic growth, driven by the watering category and hand tools in Europe. The division delivered improved operating income and higher operating margin from the sales growth and result from operational efficiency measures. In addition, good progress in North America contributed to an improved operating income.
In the Husqvarna Forest & Garden Division, sales of robotic mowers for the professional market and battery-powered products were strong. However, sales of petrol-powered wheeled products continued on a low level, partly due to lower demand and the fact that we are proactively exiting parts of this segment in North America.
Net sales in the Husqvarna Construction Division declined, with growth in emerging markets, but lower sales in Europe and North America. The operating margin declined due to the lower volumes.
Direct operating cash flow for the Group amounted to SEK -1.6bn (-0.2), impacted by the planned reduction of trade receivables financing. We are actively focusing on our inventory levels, which continued to decrease.
Strategic progress
We continue to deliver on our strategy. A key aspect of our transformation is to expand in segments such as robotic mowers, battery-powered products, watering and solutions for the professional market. Several innovative products within these areas were launched prior to the season and achieved strong growth. This includes new robotic mowers, both for residential users and professionals, chainsaw models, watering products and an expanded product range in the Husqvarna Construction Division.
Another strategic aspect is our commitment to sustainability. The Group’s efforts to reduce its carbon footprint are developing well. To date, CO₂ emissions (Scope 1, 2 and 3) have decreased by -51% compared with the base year of 2015. This is driven by the electrification of our industry and lower sales of petrol-powered products, primarily wheeled. With that, we have exceeded our target of a -35% reduction by 2025.
In summary, the sales trend improved gradually during the quarter and we achieved growth in the Gardena Division. We continue to build a stronger Group and to deliver on our strategic transformation. With a strong range of innovative products, we have a solid platform and are well positioned for the gardening season.”
Pavel Hajman, CEO
Webcast presentation and telephone conference
A webcast presentation of the Q1 report hosted by Pavel Hajman, CEO
and Terry Burke, CFO will be held at 10:00 CET on April 24, 2024.
To view the presentation, please use the link:
husqvarnagroup.creo.se/891cd80d-8cee-477f-9645-78b81c459fa2
The dial-in to the telephone conference (in order to ask questions):
+46 (0) 8 505 100 31 (Sweden) or +44 207 107 06 13 (UK).
Dates for Financial Reports 2024
July 18 Interim report for January-June 2024
October 23 Interim report for January-September 2024
Contacts
Terry Burke, CFO and Executive Vice President, Finance, IR & Communication
+46 8 738 90 00
Johan Andersson, Vice President, Investor Relations
+46 702 100 451
Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
Regeringsgatan 28, +46 8 738 90 00, www.husqvarnagroup.com
Reg. Nr: 556000-5331
NASDAQ OMX Stockholm: HUSQ A, HUSQ B
This report contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact person set out above, at 07.00 CET on April 24, 2024.
Factors affecting forward-looking statements
This report contains forward-looking statements in the sense referred to in the American Private Securities Litigation Reform Act of 1995. Such statements comprise, among other things, financial goals, goals of future business and financial plans. These statements are based on present expectations and are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, a material reduction in sales by important distributors, success in developing new products and in marketing, outcome of product responsibility litigation, progress in terms of reaching the goals set for productivity and efficient use of capital, successful identification of growth opportunities and acquisition objects, integration of these into the existing business and successful achievement of goals for making the supply chain more efficient.
