Continued challenging market conditions with intensified promotional activities, particularly in North America, impacts Husqvarna Group's financial performance in the fourth quarter

Rhea-AI Summary

Husqvarna Group reports challenging market conditions in Q4 2024, particularly in North America, with intensified promotional activities and unfavorable product mix impacting performance. The company expects organic sales to decline by 5% compared to the previous year, with an estimated operating loss between SEK 700-800 million (excluding items affecting comparability). Retail partners and servicing dealers are reducing inventory levels, leading to reduced production volumes and lower capacity utilization. CEO Pavel Hajman expressed disappointment in the continued negative development while noting ongoing cost-saving initiatives and preparation for the 2025 gardening season.

Positive

• Company is executing cost-saving initiatives

Negative

• Organic sales expected to decline by 5% in Q4 2024
• Operating loss estimated between SEK 700-800 million
• Reduced production volumes and lower capacity utilization
• Dealers reducing inventory levels
• Unfavorable product mix affecting performance
• Intensified promotional activities impacting margins

STOCKHOLM, Dec. 9, 2024 /PRNewswire/ -- Continued market conditions with intensified promotional activities, particularly in North America, and an unfavorable product mix, continue to have an impact on the Group's sales and operating result in the fourth quarter. In addition, retail partners and servicing dealers are focusing on reducing their inventory levels resulting in reduced production volumes and lower capacity utilization.

As a result, the Group estimates the organic sales for the fourth quarter to decline by -5% compared to the previous year with an operating income of approximately SEK -700m to -800m (excluding items affecting comparability).

"I am disappointed in our continued negative development in the fourth quarter. We continue to execute on our previously announced cost-saving initiatives and prepare for the 2025 gardening season with strong product launches", says Pavel Hajman, CEO Husqvarna Group.

The report for the fourth quarter 2024 will be published on February 5, 2025.

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 below, at 22.50 CET on December 9, 2024.

Henrik Sjöström, Head of external communication +46 727 15 77 85

CONTACT:

For additional information, please contact:
Media
Henrik Sjöström, Head of External Communications
+46 727 15 77 85
press@husqvarnagroup.com

Investors
Johan Andersson, Vice President Investor Relations
+46 702 100 451
ir@husqvarnagroup.com

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Continued challenging market conditions with intensified promotional activities, particularly in North America, impacts Husqvarna Group's financial performance in the fourth quarter

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SOURCE Husqvarna Group

FAQ

What is Husqvarna's (HSQVY) expected organic sales decline for Q4 2024?

Husqvarna expects organic sales to decline by 5% in Q4 2024 compared to the previous year.

What is Husqvarna's (HSQVY) projected operating loss for Q4 2024?

Husqvarna projects an operating loss between SEK 700-800 million, excluding items affecting comparability.

When will Husqvarna (HSQVY) release its Q4 2024 financial report?

Husqvarna will publish its Q4 2024 financial report on February 5, 2025.

What are the main challenges affecting Husqvarna's (HSQVY) Q4 2024 performance?

The main challenges include intensified promotional activities in North America, unfavorable product mix, and dealers reducing inventory levels leading to lower production volumes.