Husqvarna Group provides a trading update and proposes a reinstated dividend

Rhea-AI Summary

Husqvarna Group reported a 21% net sales growth for the first two months of Q3 2020, driven by favorable weather and increased lawn care activities due to COVID-19. The company plans to reinstate a SEK 2.25 per share dividend for FY 2019, following a thorough review of its financial health. An extraordinary general meeting is scheduled for October 23, 2020 to finalize this decision. The firm has also repaid all governmental COVID-19 grants, reinforcing its commitment to financial integrity. The Q3 financial report is expected on October 20, 2020.

Positive

• 21% net sales growth for Q3 2020.
• Proposed dividend of SEK 2.25 per share reinstated.
• All COVID-19 government grants repaid.

Negative

• None.

STOCKHOLM, Sept. 10, 2020 /PRNewswire/ --

Strong net sales growth
Husqvarna Group has achieved a net sales growth of 21% for the first two months of the third quarter 2020 (compared with the same period last year and adjusted for changes in exchange rates). The strong performance has been driven by a prolonged lawn and garden season which ended in late August. The growth has been supported by the stay-at-home trend related to COVID-19 and positive weather conditions. Product mix has been favorable, both in the Husqvarna and Gardena Divisions with particular strong growth in categories such as robotic lawn mowers and watering solutions.

The Board of Directors proposes a reinstated dividend and mail-in provisions in the articles
On April 28, 2020, the Board of Directors decided to withdraw the proposal for a dividend for fiscal year 2019, due to the increased uncertainty caused by COVID-19. In addition, it was stated that the situation will continuously be evaluated. The Board of Directors has now assessed the Company's financial performance and cash position, as well as general market conditions, and concluded that a reinstatement of the dividend is appropriate. Therefore, the Board of Directors has decided to call for an extraordinary general meeting on October 23, 2020, to decide on a proposal of a dividend of SEK 2.25 per share to be paid for the fiscal year 2019. The Board of Directors notes that the Company has repaid all governmental grants that have been received in Sweden related to the COVID-19 situation and no benefits have been recorded in the financial statements 2020.

The extraordinary general meeting will also decide on a proposal from the Board of Directors to include a possibility in the Articles of Association to allow voting by regular mail and collect proxies before general meetings. Further details regarding the extraordinary general meeting will be provided shortly in a separate notice for the meeting.

For more information please contact:
Glen Instone
CFO, Senior Vice President, Finance
IR & Communication
+46-8-738-90-00  

Johan Andersson
Director, Corporate Communications and Investor Relations
+46-702-100-451 or ir@husqvarnagroup.com    

All figures in this press release are preliminary and unaudited, and the final report for the third quarter of 2020 will be published on October 20, 2020 at 07:30 CET.  This press release 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 September 10, 2020.

Husqvarna Group
Husqvarna Group is a global leading producer of outdoor power products and innovative solutions for forest, park and garden care. Products include chainsaws, trimmers, robotic lawn mowers and ride-on lawn mowers. The Group is also the European leader in garden watering products and a global leader in cutting equipment and diamond tools for the construction and stone industries. The Group's products and solutions are sold under brands including Husqvarna, Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah and Diamant Boart via dealers and retailers to consumers and professionals in more than 100 countries. Net sales in 2019 amounted to SEK 42bn and the Group has around 12,000 employees in 40 countries.

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

https://news.cision.com/husqvarna-ab/r/husqvarna-group-provides-a-trading-update-and-proposes-a-reinstated-dividend,c3192101

The following files are available for download:

https://mb.cision.com/Main/996/3192101/1305040.pdf

Press release (PDF)

 

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SOURCE Husqvarna AB

FAQ

What is the proposed dividend by Husqvarna Group for 2019?

The proposed dividend is SEK 2.25 per share for the fiscal year 2019.

When is the extraordinary general meeting for Husqvarna Group?

The extraordinary general meeting is scheduled for October 23, 2020.

What drove the net sales growth for Husqvarna Group in Q3 2020?

The net sales growth was driven by favorable weather conditions and increased lawn care activities related to the COVID-19 pandemic.

When will Husqvarna Group release its Q3 2020 financial report?

The Q3 financial report will be published on October 20, 2020.

What are the stock symbols for Husqvarna Group?

The stock symbols are HSQVY, HUQVF, and HUSQF.