INTERIM REPORT JANUARY - MARCH 2019
Kai Wärn, President and CEO
“The year has started well, driven by good sell-in volumes to our trade partners. Net sales for the Group increased by 4% in the first quarter, adjusted for changes in exchange rates*. All divisions delivered growth in core categories and prioritized growth segments. The exited Consumer Brands business had a negative effect of some 3 percentage points on net sales for the Group in the quarter, currency adjusted*.
The operating income improved by 23%, excluding restructuring related expenses. Volume, product mix and price increases, as well as savings from the efficiency program and restructuring, contributed positively. Better than expected positive currency effects did not fully offset higher costs for raw materials and tariffs. In addition, we continued to invest in our strategic growth initiatives.
Since announcing our restructuring in July last year, we have made significant progress building on our core strengths. It is satisfactory to see that the start of the year, operationally and financially, is fully in line with our plan. Our product portfolio for the season is stronger than ever, with innovative new solutions and go-to-market concepts - exemplified by the new innovative Husqvarna Automower 435X AWD which was successfully launched at the Mobile World Congress in Barcelona during the quarter.
To continue to execute on our profitability improvement trajectory whilst investing in strategic growth initiatives remains our top priority for 2019. We will continue to build on our strengths in prioritized customer segments and categories such as robotic lawn mowers, forestry and battery-powered products. In parallel, development of digital services is being enhanced.”
January - March 2019
- Net sales amounted to SEK 13,651m (12,303), corresponding to a currency adjusted* increase of 4%. Exit of Consumer Brands business had a negative effect of some 3 percentage points, currency adjusted*.
- Operating income amounted to SEK 1,644m (1,373) including restructuring related expenses of SEK -42m (0). Positive currency effects of SEK 165m did not fully offset the higher costs for raw materials and tariffs.
- Operating margin improved to 12.0% (11.2) and to 12.3% (11.2) excluding restructuring related expenses.
- Earnings per share after dilution amounted to SEK 1.99 (1.64).
*Alternative Performance Measure, refer to "Definitions and alternative performance measures".
A combined press and telephone conference, hosted by Kai Wärn, President and CEO, and Glen Instone, CFO, will be held at Husqvarna Group’s office, Regeringsgatan 28, Stockholm at 10:00 CET on April 24, 2019. To participate, please dial +46 (0) 8 566 184 30 (Sweden) or +44 (0) 8 448 228 902 (UK) ten minutes prior to the start of the conference. Conference ID: Husqvarna or 3393249#. The conference call will also be audio cast live on www.husqvarnagroup.com/ir. A replay will be available later the same day.
– Glen Instone, CFO, Senior Vice President, Finance, IR & Communication, +46 72 716 5032
– Johan Andersson, Director, Group Corporate Communications and Investor Relations, +46 702 100 451
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 08.00 CET on April 24, 2019.
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 2018 amounted to SEK 41bn and the Group has around 13,000 employees in 40 countries.