Husqvarna AB

Latest Results (20.08.2024):

Net Sales Decline

Husqvarna AB reported a 14% decrease in net sales for the first quarter of 2024, amounting to SEK 14,719 million compared to SEK 17,167 million in the same period last year. The decline was influenced by planned exits from low-margin petrol-powered business segments, which impacted sales by -4%, while organic sales decreased by 11%.

Operating Income

Operating income for Husqvarna AB in Q1 2024 was SEK 1,930 million, down from SEK 2,364 million in Q1 2023. The operating margin also saw a slight decline, coming in at 13.1% compared to 13.8% in the previous year. The decrease in operating income was primarily due to lower volumes and reduced capacity utilization in production.

Earnings Per Share

Husqvarna AB's earnings per share before dilution for the first quarter of 2024 were SEK 2.31, a decrease from SEK 2.90 in Q1 2023. After dilution, earnings per share were also SEK 2.31, down from SEK 2.88 in the same period last year. This decline reflects the overall reduction in net income for the period.

Cash Flow

Cash flow from operations and investments for Husqvarna AB in Q1 2024 was SEK -1,057 million, a significant drop from SEK 588 million in Q1 2023. Direct operating cash flow was SEK -1,614 million, impacted by the planned reduction of trade receivables financing. The seasonal build-up of working capital typically results in weaker cash flow in the first quarter.

Gardena Division Performance

The Gardena Division of Husqvarna AB achieved an organic growth of 2% in Q1 2024, driven by strong performance in the watering category and hand tools in Europe. The division also saw improved operating income and a higher operating margin due to sales growth and operational efficiency measures. This positive performance helped offset some of the declines in other segments.