Challenging market conditions continue to impact Husqvarna Group's financial performance in the third quarter

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Husqvarna Group (HUSQ) said challenging market conditions and restrained consumer spending have hit third-quarter performance, with the gardening season winding down and retail partners reducing inventories.

The Group expects organic sales to decline by approximately 5% year‑on‑year for Q3 and an approximately break‑even operating income. Margins are pressured by lower capacity utilization and promotional activity, while cash flow is expected to remain strong partly due to inventory reductions. Management is accelerating cost‑saving programs and will present further mitigating actions in the Q3 report.

The company highlighted continued sales growth in robotic mowers for the professional market, consumer battery products and parts & accessories, and plans significant product launches next year. The Q3 report will be published on 23 October 2024.

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STOCKHOLM, Sept. 10, 2024 /PRNewswire/ -- Challenging market conditions and restrained consumer spending continue to have an impact on the Group's sales and operating result in the third quarter. In addition, the gardening season is gradually coming to an end with retail partners and servicing dealers reducing their inventory levels.

Cash flow is expected to remain strong, partly driven by reductions in the Group's inventory levels.

As a result of these combined factors, the Group's organic sales for the third quarter are expected to decline by approximately 5%, compared to the previous year with an approximately break-even operating income result. Margins are also negatively impacted by lower capacity utilization and promotional activities.

The ongoing cost savings programs are being accelerated and further mitigating activities will be presented in the report for the third quarter 2024.

"The current market situation is weak and has a substantial effect on our business, thus we continue to focus on our mitigating activities. Importantly, we deliver sales growth in strategically prioritized areas such as robotic mowers for the professional market, consumer battery products and parts & accessories. As part of our commitment to driving the shift towards robotics and battery, we are actively investing in these areas with several significant product launches next year", says Pavel Hajman, CEO Husqvarna Group.

Husqvarna Group's report for the third quarter will be published 23 October 2024.

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 

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 22.45 CET on September 10, 2024.

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Challenging market conditions continue to impact Husqvarna Group’s financial performance in the third quarter

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SOURCE Husqvarna Group

FAQ

What did Husqvarna Group (HUSQ) say about Q3 2024 organic sales on Sept 10, 2024?

Husqvarna said Q3 2024 organic sales are expected to decline ~5% year‑on‑year.

What operating income result did Husqvarna Group (HUSQ) expect for Q3 2024?

The company expected an approximately break‑even operating income for Q3 2024.

How will Husqvarna Group's (HUSQ) cash flow be affected in Q3 2024?

Cash flow was expected to remain strong, partly driven by reductions in inventory levels.

What mitigating actions did Husqvarna Group (HUSQ) announce for Q3 2024?

Management said it is accelerating existing cost savings programs and will present further measures in the Q3 report.

Which product areas did Husqvarna Group (HUSQ) report growth in despite weak markets?

The company reported sales growth in professional robotic mowers, consumer battery products, and parts & accessories.

When will Husqvarna Group (HUSQ) publish its Q3 2024 report?

The Q3 2024 report was scheduled for publication on 23 October 2024.