Husqvarna AB

HUSQ B

Equity

ISIN SE0001662230 / Valor 2522755

NASDAQ Nordic Exchange Stockholm, Equities (2024-12-23)

SEK 57.10-1.07%

Husqvarna AB
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About company

Husqvarna AB, a global leader in outdoor power products and innovative solutions for forest, park, and garden care, has a rich history dating back to its establishment in 1689. The company's portfolio encompasses a wide range of products including chainsaws, trimmers, robotic lawn mowers, and garden tractors. Husqvarna serves both the professional market and consumers seeking high-quality equipment for their outdoor maintenance needs. With a commitment to innovation and quality, Husqvarna has positioned itself as a key player in the development of products that enhance the performance and work experience of its users. The company's dedication to advancing technology in its field is evident in its diverse product offerings, which cater to the evolving demands of the forestry, landscaping, and garden sectors. Husqvarna's global presence is supported by a robust distribution network, ensuring accessibility and support for customers worldwide.

Summarized from source with an LLMView SourceSector: Industrials

Revenue Decline

In the first quarter of 2024, Husqvarna AB reported a significant decrease in net sales, which fell by 14% to SEK 14,719 million compared to SEK 17,167 million in the same period last year. This decline was influenced by a strategic shift away from low-margin petrol-powered products, which accounted for a 4% reduction, while organic sales dropped by 11%.

Operating Performance

Husqvarna AB's operating income for Q1 2024 was SEK 1,930 million, down from SEK 2,364 million in Q1 2023, resulting in a decreased operating margin of 13.1% compared to 13.8% last year. This reduction in operating income reflects lower sales volumes and the impact of exiting certain product segments.

Earnings Per Share

The company's earnings per share before dilution decreased to SEK 2.31 in Q1 2024 from SEK 2.90 in the corresponding quarter of the previous year. After dilution, earnings per share also saw a decrease, matching the pre-dilution amount of SEK 2.31, compared to SEK 2.88 in Q1 2023.

Cash Flow Challenges

Husqvarna AB experienced a challenging cash flow situation in the first quarter of 2024, with cash flow from operations and investments reported at SEK -1,057 million, a significant drop from SEK 588 million in Q1 2023. The direct operating cash flow was also negative at SEK -1,614 million, primarily due to a planned reduction in trade receivables financing.

Strategic Acquisitions and Outlook

During Q1 2024, Husqvarna AB expanded its Gardena Division by acquiring ETwater, enhancing its commercial irrigation offerings in North America. Despite the financial setbacks in the quarter, the company remains optimistic about its strategic direction, focusing on growth in robotic mowers, battery-powered products, and professional market solutions, anticipating improved performance as the gardening season progresses.

Summarized from source with an LLMView Source

Key figures

-31.8%1Y

-59.9%3Y

-25.0%5Y

Performance

31.4%1Y

34.5%3Y

35.3%5Y

Volatility