Husqvarna : Year-end Report January - December 2020

Rhea-AI Summary

Husqvarna reported a 4% increase in Q4 2020 net sales to SEK 6,683m, and a 13% growth adjusted for exchange rates. However, the operating income fell to SEK -944m due to supply chain efficiency measures, leading to a diluted earnings per share of SEK -1.26. For 2020, net sales dropped 1% to SEK 41,943m, but increased by 6% when adjusted. The company plans to propose a dividend of SEK 2.40 per share. Strategic investments in R&D and sustainability efforts are set to accelerate growth, alongside the launch of CEORA, an autonomous turf care solution.

Positive

• Net sales in Q4 increased by 4% to SEK 6,683m; 13% growth adjusted for exchange rates.
• Operating income improved to SEK -129m excluding items affecting comparability.
• Direct operating cash flow increased to SEK 6,071m from SEK 3,849m in 2019.
• Dividend proposal increased to SEK 2.40 per share from SEK 2.25 per share.

Negative

• Operating income fell to SEK -944m in Q4 due to supply chain measures.
• Annual net sales decreased by 1% to SEK 41,943m.

STOCKHOLM, Feb. 3, 2021 /PRNewswire/ --

Fourth quarter 2020

• Net sales increased by 4% to SEK 6,683m (6,408), or by 13% when adjusted for changes in exchange rates. (Exits of Consumer Brands business were completed in Q3).
• Operating income was SEK -944m (-493). Excluding items affecting comparability, operating income amounted to SEK -129m (-310).
• Items affecting comparability amounted to SEK -815m (-183) and relate to the supply chain efficiency measures announced in Q3 2020, see page 4 and 16.
• Earnings per share after dilution amounted to SEK -1.26 (-0.67).
• The Construction Division acquired Blastrac, a leading provider of complementing surface preparation technologies.
• The Husqvarna Division announced CEORA, an autonomous professional turf care solution for grass areas up to 50 000m², operating within virtual boundaries.

January - December 2020

• Net sales decreased 1% to SEK 41,943m (42,277) or increased by 6% when adjusted for exits of Consumer Brands business and changes in exchange rates
• Operating income was SEK 3,669m (3,690). Excluding items affecting comparability, operating income amounted to SEK 4,484 (3,915) representing a margin of 10.7% (9.3).
• Items affecting comparability amounted to SEK -815m (-225) and relate to the supply chain efficiency measures, see page 4 and 16.
• Earnings per share after dilution amounted to SEK 4.35 (4.42).
• Direct operating cash flow* was SEK 6,071m (3,849).
• The Board of Directors will propose a dividend for 2020 of SEK 2.40 per share (2.25) to the AGM.

 Strong results despite a challenging year

"We achieved a continued strong sales growth in our seasonally smallest fourth quarter. The growth was largely driven by our core categories robotics & battery-powered products, handheld products and watering solutions and supported by a prolonged season. This resulted in a net sales growth of 13%*. The development was particularly strong for the Husqvarna and Gardena Divisions, up 19%* and 13%*, respectively, where we strengthened our market positions. The construction industry is severely impacted by the effects of Covid-19 and the net sales of the Construction Division decreased by 2%* in the quarter.

2020 - a successful year

Our primary focus during 2020 has been the health and safety of the employees while decisively safeguarding the business continuity. The good performance in the fourth quarter concludes a record year where we, as a result of hard diligent work over several years, have now reached our financial targets, growth, profitability and capital efficiency, despite a volatile and challenging macro environment marked by the Covid-19 pandemic. Group net sales increased by 6%* during 2020 which demonstrates our strong position and agility to adapt to rapid shifts in demand. The growth was also supported by the stay-at-home trend and an extended gardening season.

Overall, we achieved an operating margin of 10.7% for the year, excluding items affecting comparability of SEK -815m (-225), related to the handheld supply chain efficiency measures we announced in Q3. The improved margin was driven by sales growth in all our regions, product mix effects and temporary cost avoidance activities. Direct operating cash flow* increased to SEK 6.1 billion (3.8) for the year. The Board of Directors will propose a dividend of SEK 2.40 (2.25) per share to the AGM for 2020.

Our strategic focus on sustainability has resulted in a reduction of absolute CO₂ emissions across the value chain by 32% compared with the base year 2015. As we enter the new phase of Sustainovate 2025, we continue our commitment to contribute to limiting the global warming to 1.5 degrees.

Raised strategic ambitions & investing in the future

As previously announced, we are accelerating our strategic growth investments by 50% annually or SEK 250m and focus on innovative, sustainable products and solutions. We are increasing our investments in R&D, production, and go-to-market capabilities for our core categories. One example is CEORA, our latest robotic lawn mowing platform for large, commercial turf areas operating within virtual boundaries. With CEORA, we aim to transform professional green landscaping with an automated, cost-efficient, and sustainable solution. Another example is stepping up our efforts pertaining to digital services, where in 2020 we passed the milestone of one million connected customers on our digital platforms. 

In conclusion, we delivered a strong fourth quarter resulting in a record year, achieving our financial targets and strengthened our market positions. I would like to sincerely thank our team around the world for tremendous efforts and commitment during the year. With the global uncertainty of the Covid-19 situation, we are well prepared to adapt to fluctuations in demand and focus to protect the health and safety of our employees and business partners. We will continue to accelerate our strategy to further strengthen our market positions and technology leadership."

*Net sales is adjusted for changes in exchange rates, and for the Husqvarna and Gardena Divisions', exits of the Consumer Brands business.

Henric Andersson, President & CEOTelephone Conference

A conference call, hosted by Henric Andersson, President & CEO, and Glen Instone, CFO, will be held at 10:00 CET on February 3, 2021.

To participate, please dial +46 (0) 8 505 583 51 (Sweden) or +44 333 300 9274 (UK) ten minutes prior to the start of the conference. Conference ID: Husqvarna.

The conference call is also available through  

https://husqvarna-group.creo.se/210203

. A replay will be available later the same day.

Contacts

Glen Instone, CFO, Senior Vice President, Finance, IR & Communication +46 8 738 90 00

Johan Andersson, Director, Group Corporate Communications and Investor Relations, +46 702 100 451

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 February 3, 2021

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

https://news.cision.com/husqvarna-ab/r/year-end-report-january---december-2020,c3278348

The following files are available for download:

https://mb.cision.com/Main/996/3278348/1367054.pdf	Interim report Q4 2020 Husqvarna Group (PDF)
https://news.cision.com/husqvarna-ab/i/henric-andersson--president---ceo,c2873809	Henric Andersson, President & CEO

View original content:http://www.prnewswire.com/news-releases/husqvarna--year-end-report-january---december-2020-301220948.html

SOURCE Husqvarna AB

FAQ

What were Husqvarna's Q4 2020 net sales figures?

Husqvarna's net sales in Q4 2020 were SEK 6,683m, a 4% increase year-on-year.

What is the operating income for Husqvarna in Q4 2020?

The operating income for Q4 2020 was SEK -944m.

How did Husqvarna's annual net sales perform in 2020?

Annual net sales decreased by 1% to SEK 41,943m in 2020.

What dividend does Husqvarna propose for 2020?

Husqvarna proposes a dividend of SEK 2.40 per share for 2020.

What innovative product did Husqvarna announce recently?

Husqvarna announced CEORA, an autonomous turf care solution for large grass areas.