Le Lézard
Classified in: Mining industry, Business
Subjects: ERN, ACC

Husqvarna AB - INTERIM REPORT JANUARY - MARCH 2022


Strong demand but sales affected by supply chain constraints

STOCKHOLM, April 21, 2022 /PRNewswire/ -- 

First quarter 2022    

A quarter with strong demand but affected by short-term supply chain constraints

"Demand for our products and solutions was strong during the first quarter of the year, but sales have been constrained by disturbances in the supply chain. Sales of handheld and construction products as well as parts and accessories grew significantly while robotic and ride-on mowers were materially lower than last year. We are, in an uncertain environment, taking decisive measures together with suppliers and partners to resolve the supply chain constraints and expect gradual improvements throughout the gardening season.

Organic growth was -2% for the first quarter, with Husqvarna Forest & Garden Division delivering -7% whilst Gardena Division achieving organic growth of 5%. The Husqvarna Construction Division had a strong development in its core markets and reached an organic growth of 10%, mainly driven by high sales of power cutters and an overall continued favorable market for the construction industry. We have, for the acquired company Blastrac, successfully initiated the final step of the full integration and brand migration to the Husqvarna brand.

Operating profit for the first quarter amounted to SEK 2,190m (2,293). Price increases offset increased costs for raw materials and logistics, while higher strategic investments and lower volumes had a negative impact. Product mix and dilution from the acquired Orbit Irrigation had a negative impact on the operating margin. Direct operating cash flow amounted to SEK -1,452m (143).

The decline is related to higher inventories as we purposely increased the levels going into the year, but it is also impacted by the erratic supply of certain components which has led to higher component and semi-finished products inventory and increased lead-times for products in transit during the quarter.

Regarding the situation in Ukraine, we are monitoring the developments closely and our main priority is the safety and security of our employees. In addition, we have stopped all exports to and investments in Russia. Cost increases for raw materials, energy and transportation are expected to continue and therefore further price increases are being implemented.

Focus on long-term value creation

Our focus is to build a stronger Group by diligently executing on our strategy to create long term sustainable value. We are well positioned in attractive segments and are successfully driving the transformation of our industry. The strategy and value creation potential has naturally not changed due to the short-term supply chain constraints. Our technology leadership in robotic mowers has been further strengthened with the launch of the AIM/LONA technology for the consumer market, the latest mapping and navigation technology that enables virtual garden maps and zone control. We have also announced that for 2023 we will launch a boundary wire free solution for the consumer market. In the professional segment, production of CEORAtm has commenced with the first products now having reached our customers. The Husqvarna Construction Division is ramping up sales of the K 1 PACE 94V battery power cutter with performance comparable to a fossil-fuel powered product.

Leading in sustainability

We continue to deliver on our sustainability ambitions and are expanding our industry leadership. For example, we have achieved a reduction in CO? emissions across the value chain of -30% compared with our 2025 target of -35%. EcoLine, Gardena's range of garden tools produced with a high share of recycled materials, is included in the four circular innovations that have been introduced in the market. We have also signed a SEK 5 bn sustainability-linked revolving credit facility to further integrate our sustainability ambitions throughout our operations.

In summary, strong customer demand continues and we are taking decisive measures together with our suppliers to resolve the current supply chain constraints. We expect gradual improvements throughout the gardening season and continue to execute on our strategy for sustainable value creation."

Henric Andersson, President and CEO

Webcast presentation and telephone conference
A webcast presentation of the Q1 report, hosted by Henric Andersson, President & CEO, and Terry Burke, CFO, will be held at 10:00 CET on April 21, 2022.

To view the presentation, please use the link:
https://husqvarna-group.creo.se/220421

The dial-in to the telephone conference (in order to ask questions):
+46 (0) 8 519 993 83 (Sweden) or +44 333 300 9031 (UK).
Conference pin: 33173009#.

Dates for Financial Reports 2022

        

July 15 

 

 Interim report for January-June

                                   

October 21 

                                   

Interim report for January-September


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 07.30 CET on April 21, 2022.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/husqvarna-ab/r/interim-report-january---march-2022,c3549744

The following files are available for download:

https://mb.cision.com/Main/996/3549744/1566621.pdf

Interim report Q1 2022 Husqvarna Group (PDF)

https://news.cision.com/husqvarna-ab/i/henric-andersson-president---ceo,c3039938

Henric Andersson President & CEO

 

SOURCE Husqvarna AB


These press releases may also interest you

at 08:35
DXP Enterprises, Inc. today announced financial results for the second quarter ended June 30, 2022. The following are results for the three and six months ended June 30, 2022, compared to the three and six months ended June 30, 2021 and sequentially...

at 08:35
Air Industries Group , an integrated Tier 1 manufacturer of precision assemblies and components for mission-critical aerospace and defense applications, and a prime contractor to the U.S. Department of Defense, today announced its financial results...

at 08:35
OSI Systems, Inc. today announced that it will hold its quarterly conference call on Thursday, August 18, 2022 at 1:30pm PT to discuss its results for the fourth quarter and fiscal year ended June 30, 2022. This call is being webcast through the...

at 08:35
CEO Coaching International, the leading CEO coaching firm for growth-focused CEOs and entrepreneurs globally, is pleased to announce Angela Korompilas as its newest Partner and Coach....

at 08:35
RE/MAX Holdings, Inc. , parent company of RE/MAX, one of the world's leading franchisors of real estate brokerage services, and Motto Mortgage, the first and only national mortgage brokerage franchise brand in the U.S., has appointed Susie Winders as...

at 08:35
August 8, 2022 ? Melius Research (Melius), today announced that Conor Cunningham has joined the firm as a Senior Analyst covering the Airlines & Travel sectors. Conor was most recently an Executive Director at MKM Partners. Prior to MKM Partners,...



News published on 21 april 2022 at 03:30 and distributed by: