Husqvarna Group: INTERIM REPORT JANUARY - MARCH 2023
Solid start to the year
First quarter 2023
- Net sales increased by 9% to SEK 17,167m (15,685). Organic sales growth was 2% and changes in exchange rates contributed with 7%.
- Operating income was SEK 2,364m (2,159) and the operating margin 13.8% (13.8). Excluding items affecting comparability, operating income grew by 10% to SEK 2,410 (2,190) and the operating margin was 14.0% (14.0).
- Items affecting comparability amounted to SEK -46m (-31) and was related to the acceleration of the strategic transformation announced in October 2022.
- Earnings per share before dilution amounted to SEK 2.90 (2.87) and earnings per share after dilution amounted to SEK 2.88 (2.86).
- Cash flow from operations and investments was SEK 588m (-1,219). Direct operating cash flow improved to SEK -239m (-1,452).
- Operating working capital/net sales was 32.7% (23.5).
"We delivered a solid first quarter, which is our sell-in quarter ahead of the gardening season. Group net sales increased by 9%, of which organic sales growth was 2%. Growth was particularly strong for robotic mowers, battery-powered products and wheeled products.
The Husqvarna Forest & Garden Division delivered an organic sales growth of 14%. Growth of robotic mowers were strong for both the residential and professional segments, supported by solid demand and restocking by our servicing dealers. In addition, the supply chain improved and the order backlog decreased during the period. The division's assortment of battery-powered products were expanded and the category achieved a strong performance.
Organic sales growth in the Gardena Division was -20%. Sales were impacted by the continued cautious approach to increase stock levels ahead of the gardening season among our retail partners. It should also be viewed in light of challenging comparables from the preceding year.
The Husqvarna Construction Division delivered a flat organic growth, with good performance in North America.
Group operating income, excluding items affecting comparability, increased by 10% to SEK 2,410m (2,190), which is a record level for a first quarter. Net sales growth, including price increases, supported the performance. Direct operating cash flow improved by SEK 1.2bn to SEK -239m (-1,452), due to a higher operating result and improved cash flow from working capital changes. We are continuing our activities to reduce inventory levels during the gardening season.
Solid performance in an uncertain environment
We delivered a solid first quarter. Given the uncertain macroeconomic environment and consumer demand, we remain focused on cost efficiency, improved cash flow and operational flexibility.
Our program for accelerating the Group's transformation, as announced in October 2022, is progressing as planned. We are increasing our investments in the focus areas of robotic mowers, battery, watering and solutions for the professional market. In parallel, we will proactively reduce business in petrol-powered, low-margin consumer segments.
As a Group, we continue to invest for the future and lead our industry's transition to low-carbon, resource-smart solutions. The Group's electrification ambition aims to consistently reduce our carbon footprint. To date, we have reduced CO₂ emissions (scope 1, 2 and 3) by 33% compared with the base year of 2015. The target is a 35% reduction by 2025.
With our strong foundation and product offering we are well positioned to continue to create sustainable value."
Pavel Hajman, acting CEO
A telephone conference of the Q1 report hosted by Pavel Hajman, acting CEO and Terry Burke, CFO will be held at 10:00 CET on April 20, 2023.
To view the presentation, please use the link:
The dial-in to the telephone conference (in order to ask questions):
+46 (0) 8 5051 0031 (Sweden) or +44 207 107 06 13 (UK).
Dates for Financial Reports 2023
July 18 Interim report for January-June 2023
October 20 Interim report for January-September 2023
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 20, 2023.