#Sweden #Stockholm #Q4 2024 #financial report #Husqvarna

Husqvarna Group's 2024 Financial Overview

Husqvarna Group released its year-end report for January to December 2024, highlighting various financial dynamics including a notable decrease in both quarterly and annual net sales. Despite these challenges, the firm showcased strong cash flow and significant efforts aimed at strategic transformation.

Fourth Quarter Performance

In the fourth quarter of 2024, Husqvarna Group experienced a 2% decline in net sales, totaling SEK 8,464 million, down from SEK 8,605 million. Organic sales fell by 3%, although the fluctuations in exchange rates had a modest positive effect of 1%. The operating income showed a notable loss of SEK 1,285 million, resulting in an operating margin of -15.2%, which was a decrease compared to -11.4% seen in the previous year. When accounting for items affecting comparability, the adjusted operating income was -694 million.

Despite these setbacks, cash flow from operations climbed to SEK 582 million, marking an increase over the previous quarter's 523 million.

Yearly Overview: January – December 2024

Over the entire year, Husqvarna's net sales totaled SEK 48,352 million, which reflects a 9% drop compared to 2023. The impact from the planned divestiture of low-margin petrol-powered business significantly contributed to this decline. Excluding the effects of currency and strategic exits, organic sales were down by 7%. The annual operating income registered a decrease to SEK 2,597 million, translating to a margin of 5.4%, down from 7.3% the prior year. Moreover, earnings per share after dilution fell to SEK 2.31, compared to 3.81 in 2023.

However, Husqvarna noted a solid cash flow from operations and investments at SEK 4,372 million, slightly down from 4,414 million. Notably, direct operating cash flow also improved to SEK 6,905 million, up from 6,541 million, primarily due to effective inventory management. In a positive shift, the Group reported a reduction of net debt by SEK 1.2 billion compared to the previous year.

Strategic Transformation and Sustainability Efforts

In response to ongoing market challenges, Husqvarna has focused on enhancing its organizational strategy aimed at increasing efficiency and driving transformation. Pavel Hajman, CEO, conveyed that the company intensified efforts to streamline operations, achieving substantial cost savings of SEK 735 million throughout the year.

Looking ahead, Husqvarna aims to fortify its position in core markets by meeting consumer needs through innovative products such as robotic mowers and battery-powered tools, which constitute part of the firm’s growth strategy. The report reveals that electrified products accounted for 44% of motorized sales, an increase from the 42% recorded in 2023.

Husqvarna also made significant strides in sustainability, managing to reduce CO2 emissions by 56% from 2015 levels, thereby exceeding its previous target of 35%. The firm plans to continue these initiatives with a focus on electrification and reducing its carbon footprint further.

Looking Forward: Plans for 2025

As the company approaches the end of its strategic period, it remains committed to prioritizing profitable growth areas. An updated strategy is expected to be announced on a Capital Markets Day scheduled for the fourth quarter of 2025. The upcoming year promises new product launches aimed at capturing market demand and revitalizing sales, especially in the low-margin segments of the market.

Conclusion

In light of the challenges faced in 2024, Husqvarna’s strong cash flow, reduced debt, and continued transformation efforts indicate a resilient stance moving forward. The company aims to leverage these strengths to foster growth and enhance profitability in the future. With a comprehensive strategy in place, Husqvarna prepares for a competitive 2025 season, focusing on innovation, sustainability, and consumer engagement.