YEAR-END REPORT JANUARY - DECEMBER 2021

A record year

Fourth quarter 2021

• Net sales increased by 23% to SEK 8,234m (6,683). The organic growth was 17%, changes in exchange rates contributed with 2% and acquisitions with 4%.
• Operating income was SEK -132m (-944). Excluding items affecting comparability, operating income was SEK -180m (-129).
• Earnings per share before dilution amounted to SEK 0.26 (-1.26) and earnings per share after dilution amounted to SEK 0.26 (-1.26).
• Cash flow from operations and investments was SEK -6,420m (-1,386) of which SEK -3,935m (-410) was related to acquistions. Direct operating cash flow was SEK -1,131m (-185).
• Operating working capital / net sales amounted to 21.8% (24.4).
• Husqvarna Group acquired Orbit Irrigation in the U.S., creating the global market leader in residential watering (see page 8).
• Husqvarna Group announced new financial targets at the recent Capital Markets Day.

January – December 2021

• Net sales increased by 12% to SEK 47,059m (41,943). The organic growth was 15%, changes in exchange rates impacted with -5% and acquisitions with 2%.
• Operating income was SEK 5,746m (3,669), representing an operating margin of 12.2% (8.7). Excluding items affecting comparability, operating income increased by 27% to SEK 5,684m (4,484), representing an operating margin of 12.1% (10.7).
• Earnings per share before dilution amounted to SEK 7.76 (4.36) and earnings per share after dilution amounted to SEK 7.73 (4.35).
• Cash flow from operations and investments was SEK -713m (5,686). Direct operating cash flow was SEK 3,651m (6,071).
• The Group’s absolute CO₂ emissions across the value chain (scope 1, 2 & 3) have been reduced by -27% compared with the 2015 baseline.
• The Board of Directors will propose a dividend for 2021 of SEK 3.00 per share (2.40) to the AGM.

A record year for the Group

"2021 has been a successful year for us. In cooperation with our trade partners and suppliers and thanks to an excellent contribution by our employees, we delivered a record year, in which we continued to execute on our strategy. Overall we strengthened our market positions, particularly in high-growth segments such as robotic mowers and battery-powered products, in a year characterized by pandemic effects with increased costs as well as disruptions in global supply chains.

Good performance in the fourth quarter

We achieved continued strong sales growth in the seasonally smallest fourth quarter. Growth was strong in all divisions and mainly driven by our core categories such as robotic mowers, battery-powered products, watering solutions and handheld products. This resulted in an organic growth of 17%. The Husqvarna Forest & Garden Division delivered an organic growth of 14%. The organic growth in the Gardena Division was 24% and supplemented by a growth of 24% related to the acquisition of Orbit Irrigation. The growth was partly driven by early deliveries to trade partners in preparation for the upcoming garden season. The Husqvarna Construction Division had a strong performance in the main markets and organic growth was 21%, also supported by an improved market situation.

In total, operating income, excluding items affecting comparability, amounted to SEK -180m (-129). Higher costs for raw materials and logistics together with our continued increased investments in strategic growth areas had a negative impact however, partly mitigated by sales growth and price increases.

A record year

The Group’s organic growth was 15% for the year. The stay-at-home trend has contributed positively while we strengthened our market positions in prioritized strategic segments such as battery-powered products, robotic mowers and handheld products. Operating income, excluding items affecting comparability, increased by 27% to SEK 5,684m (4,484) and the operating margin amounted to 12.1% (10.7), which is a record result. The Board of Directors will propose to the Annual General Meeting an 25% increase of the dividend to SEK 3.00 (2.40).

As a global company, we are exposed to the limitations of the pandemic on global supply chains and availability on key components. We expect these challenges to continue to have an impact in 2022 and our dedicated work continues in order to meet customers’ demand.

New financial targets

To reflect our profitable growth strategy, we launched new financial targets at the Group's Capital Markets Day (CMD) in December 2021. The targets include annual organic net sales growth of 5%, an operating margin of 13% and a capital efficiency target that implies an operating working capital of 20% of net sales.

Increased ambitions

We increase our focus on profitable growth as well as acquisition opportunities to complement and strengthen the organic development in all divisions going forward. To further emphasize our commitment to delivering on our strategy, we presented three operational ambitions during the CMD. Within five years, our ambition is to (i) double the sales of robotic mowers, (ii) double the number of connected products and, (iii) increase the share of electrified products sold to two-thirds. We will report on these ambitions on an annual basis.

Our electrification ambition is part of our ambitious sustainability work, which aims to consistently reduce the carbon footprint. So far, we have reduced CO2 emissions (scope 1,2 & 3) by -27% compared to the base year 2015. The target is to reduce by -35% by 2025.

Well positioned for the future

Overall, 2021 has been a successful year for us with strong financial performance and progress for all divisions. We work continuously to overcome challenges in our supply chain, including increasing our inventories in preparation for the upcoming season. With a clear forward-leaning strategy, innovation agenda and a dedicated team, we are well positioned for 2022 and our continued value creation journey.”

Telephone Conference

A conference call, hosted by Henric Andersson, President & CEO, and Glen Instone, CFO, will be held at 10:00 CET on February 3, 2022.

To participate, please dial +46 (0) 8 505 583 58 (Sweden) or +44 333 300 9270 (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/220203. A replay will be available later the same day.
 

Dates for Financial Reports 2022

April 21           Interim report for January-March

July 15            Interim report for January-June

October 21      Interim report for January-September

Contacts
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 February 3, 2022.

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