Husqvarna Ab Class A · OMXSTO:HUSQ_A
Husqvarna Ab Class A — Q3 2024 Earnings Presentation
19 slides from Husqvarna Ab Class A's earnings presentation, Oct 23, 2024
Slide 1: Q3 Results – October 23, 2024
Q3 Results – October 23, 2024 Pavel Hajman, CEO Terry Burke, CFO
Slide 2: Growth in the strategic areas: robotics and battery
Growth in the strategic areas: robotics and battery • Good growth in robotic mowers and battery- powered products • Strong cash flow and reduced net debt • Negative organic growth reflect continued challenging market conditions and restrained consumer spending • Additional cost reductions launched t
Slide 3: Strong cash flow in the quarter
Strong cash flow in the quarter • Growth in robotics, battery and SEK • Lower volumes and capacity parts and accessories utilization • Challenging market conditions NET SALES • Higher promotional activities and restrained consumer OPERATING INCOME SEK 9,739m (10,512) spending • Delivering on cost sa
Slide 4: Husqvarna Forest & Garden Division
Husqvarna Forest & Garden Division Q3: Organic sales declined 1%; operating margin at * 2.5% • Good growth for pro & residential robotics, consumer battery products and P&A • Lower sales in petrol-powered products; specifically wheeled in North America • Operating income impacted by lower volumes &
Slide 5: Gardena Division
Gardena Division Q3: Organic sales declined 8%; operating margin at * -7.6% • Good sales for battery products and hand tools • Watering business decreased, due to unfavourable weather in July. However, gradually improved during the quarter * • Negative volume and mix impacting profitability, partly
Slide 6: Husqvarna Construction Division
Husqvarna Construction Division Q3: Organic sales declined 8%; operating margin at * 8.2% • Sales growth in Europe. Weak market and lower sales in North America • Good performance for power cutters, demolition robots and P&A • Lower volumes and capacity * utilization impacting profitability, partly
Slide 7: Q3 2024 EBIT bridge (excl. IAC)
Q3 2024 EBIT bridge (excl. IAC) -362m -87% 415 (3.9% margin) -520 +20 -20 -30 53 (0.5% margin) +190 Q3 2023 Price / volume / Cost savings Raw materials Transformational Currency Q3 2024 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 8: YTD 2024 EBIT bridge (excl. IAC)
YTD 2024 EBIT bridge (excl. IAC) -1,249m -25% 5,138 (11.5% margin) -1,890 3,889 (9.8% margin) -65 -135 +250 +590 YTD 2023 Price / volume / Cost savings Raw materials Transformational Currency YTD 2024 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 9: Husqvarna Group – EBIT development
Husqvarna Group – EBIT development *Operating income excluding items affecting comparability
Slide 10: Additional fixed cost savings
Additional fixed cost savings • Additional cost saving measures, leading to Placeholder photo savings of SEK 500m in fixed costs • Impacting approximately 400 positions • Majority will have full effect in 2025 • Combined with our existing acceleration program, total targeted savings are now SEK 1.7b
Slide 11: Consolidated balance sheet
Consolidated balance sheet Sep 30, 2024 Sep 30, 2023 Dec 31, 2023 • Solid financial position SEKm Non-current assets 30 360 31 266 30 592 Inventories Trade receivables 13 521 6 081 17 090 6 562 17 184 5 289 • Good cash collections lowers trade Other current assets 1 846 2 474 3 018 receivables Cash
Slide 12: Net debt decreased by SEK 2.4bn since last year, however lower EBITDA
Net debt decreased by SEK 2.4bn since last year, however lower EBITDA Net debt / EBITDA Net debt SEKbn -2.4bn -16% 15,2 12,8 Q3 2023 Q3 2024 Note: average net debt / rolling 12 months EBITDA, excl. items affecting comparability
Slide 13: Reducing inventory levels
Reducing inventory levels -3.6bn Inventories, -21% SEK bn -3.7bn -22% 19,3 18,7 17,9 17,1 17,2 17,1 14,7 13,5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024
Slide 14: Record direct operating cash flow
Record direct operating cash flow Trade receivables financing used in H1 2022 and H1 2023
Slide 15: Investing in our value creation areas
Investing in our value creation areas Battery- Watering Robotic Professional powered products mowers solutions products 15
Slide 16: Launch of 13 new boundary wire free robotic mowers for 2025
Launch of 13 new boundary wire free robotic mowers for 2025 • Strong growth in professional robotics, driven by golf and sports • Total 13 new robotic mower launches for 2025, all boundary wire free • 4 professional models • 9 residential models
Slide 17: Good progress on our Sustainovate 2025 targets
Good progress on our Sustainovate 2025 targets CARBON CIRCULAR PEOPLE Reduce absolute CO2 Launch 50 new Empower 5 million emissions by -35% circular innovations people to make sustainable choices Status Q3 2024: Status Q3 2024: Status Q3 2024: -56% 33 3.6m
Slide 18: Growth in strategic focus areas: robotics and battery
Growth in strategic focus areas: robotics and battery • Good growth in robotic mowers and battery- powered products • Strong cash flow and reduced net debt • Negative organic growth reflect continued challenging market conditions and restrained consumer spending • Additional cost reductions launched
Slide 19: www.husqvarnagroup.com
Husqvarna Group www.husqvarnagroup.com