INTERIM REPORT JANUARY - JUNE 2021
A record quarter
Second quarter 2021
Net sales increased by 8% to SEK 14,614m (13,482). The organic growth was 14%, changes in exchange rates impacted with -7% and acquisitions with 1%.
Operating income was SEK 2,659m (2,191). Excluding items affecting comparability, operating income increased by 21% to SEK 2,645m (2,191). The operating margin was 18.1% (16.3).
Earnings per share before dilution amounted to SEK 3.49 (2.74) and earnings per share after dilution amounted to SEK 3.48 (2.74).
Cash flow from operations and investments was SEK 3,174m (2,956). Direct operating cash flow was SEK 2,875m (2,463).
Operating working capital / net sales amounted to 21.1% (28.5).
Save the date: Husqvarna Group will host a Capital Markets Day on December 1, 2021, 08:30, at Fotografiska, Stockholm.
January – June 2021
Net sales increased by 11% to SEK 28,644m (25,690). The organic growth was 19%, changes in exchange rates impacted with -9% and acquisitions with 1%.
Operating income was SEK 4,952m (3,616). Excluding items affecting comparability, operating income increased by 37% to SEK 4,938m (3,616). The operating margin was 17.2% (14.1). For the rolling 12-month period the operating margin amounted to 12.9% (9.2), excluding items affecting comparability.
Earnings per share before dilution amounted to SEK 6.39 (4.47) and earnings per share after dilution amounted to SEK 6.37 (4.47).
Cash flow from operations and investments was SEK 4,723m (3,371). Direct operating cash flow was SEK 3,018m (2,330).
The Group’s total CO2 emissions across the value chain has been reduced by 30% compared with the 2015 base line and measured on a rolling 12-month basis.
A record quarter
"We delivered a record second quarter with strengthened market positions and strong performance in all divisions and main regions. The customer interest for gardening products increased and the construction industry market continued to rebound. Organic sales growth was 14% whilst operating income increased by 21%. We are very pleased with significant wins in strategically important segments during the quarter, notably robotic lawn mowers and battery-powered products where we grew organically by 27%.
The Husqvarna Division achieved 18% organic sales growth, with strong performance across all product categories and geographies, especially within handheld solutions and robotic lawn mowers. The Gardena Division’s performance in strategic growth markets, notably in Southern and Northern Europe, was extremely encouraging and offsetting the late start to the watering season in Central Europe. In total Gardena’s organic sales growth was flat, compared to an exceptional second quarter last year. The Construction Division achieved an organic sales growth of 31%, supported by an improved market situation. The integration of the Blastrac acquisition is progressing according to plan.
Our strong growth, a favorable product mix and price increases, combined with good cost control drove an increase in operating income to SEK 2,645m (2,191), excluding items affecting comparability. The increase was partly offset by higher raw material and logistics costs. Operating margin increased to 18.1% (16.3) for the second quarter, excluding items affecting comparability, and amounted to 12.9% on a rolling 12-month basis. We continued to improve our working capital position and direct operating cash flow increased to SEK 3,018m (2,330) during the first half year.
In the light of the Covid-19 situation, strong demand combined with supply shortages continue to put pressure on global supply chains including component availability. This has to some extent limited the volumes we have been able to produce.
In the quarter, we unfortunately identified a defective component on a circuit board used in a limited batch of robotic lawn mowers. We sincerely apologize for the inconvenience this has caused our valued customers and dealers. We are fully committed to quickly resolve this and as of today the vast majority of customers have had the component in question replaced.
Accelerating sustainable value creation
Our performance this quarter reflects the strength of our long-term strategy and our execution continues at a rapid pace, as we lead our industry in the transition to a low-carbon and resource-smart economy. This means significant investments in innovation. With the recently launched professional robotic lawn mower Husqvarna CEORA™, we are setting out to transform the commercial turf care market.
The Construction Division announced a new battery-powered Power cutter, K1 PACE, setting a new standard providing comparable performance to petrol power cutters. These are both examples of groundbreaking products and solutions that show our commitment to drive our industry towards further automation and electrification. As a Group, we have now reduced our absolute CO2 emissions along the value chain by 30% compared to the base year 2015. We are well on our way to achieve our 35% reduction target by 2025.
Looking ahead, based on our strong strategy execution and value proposition paired with the fact that many people have developed an increased appreciation for the outdoors, we are well-positioned to continue to grow and transform to meet our customers expectations.”
Henric Andersson, President & CEO
A conference call, hosted by Henric Andersson, President & CEO, and Glen Instone, CFO, will be held at 10:00 CET on July 16, 2021.
To participate, please dial +46 (0) 8 505 583 74 (Sweden) or +44 333 300 9267 (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/210716. A replay will be available later the same day.
Dates for Financial Reports 2021
October 20 Interim report for January- September
Glen Instone, CFO, Senior 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 07.30 CET on July 16, 2021.