STOCKHOLM, July 16, 2021 / PRNewswire / – A Record Quarter
Second quarter 2021
Net sales increased 8% for 14,614m SEK (13 482). Organic growth was 14%, currency fluctuations impacted by -7% and acquisitions by 1%.
The operating result was 2 659 million Swedish kronor (2191). Excluding items affecting comparability, operating income rose 21% to 2 645 SEK (2191). The operating margin was 18.1% (16.3).
Earnings per share before dilution amounted to 3.49 SEK (2.74) and earnings per share after dilution amounted to 3.48 SEK (2.74).
Cash flows from operations and investments were 3,174m SEK (2,956). The direct operating cash flow was SEK 2,875m (2463).
Operating working capital / turnover amounted to 21.1% (28.5).
Save the date: Husqvarna Group will organize a Capital Markets Day on December 1, 2021, 8:30 am, at Fotografiska, Stockholm. January – June 2021
Net sales increased 11% for 28,644m SEK (25,690). Organic growth was 19%, currency fluctuations impacted by -9% and acquisitions by 1%.
The operating result was SEK 4,952m (3,616). Excluding items affecting comparability, operating income rose 37% to SEK 4,938m (3,616). The operating margin was 17.2% (14.1). Over the 12-month rolling period, the operating margin amounted to 12.9% (9.2), excluding items affecting comparability.
Earnings per share before dilution amounted to 6.39 SEK (4.47) and earnings per share after dilution amounted to 6.37 SEK (4.47).
Cash flows from operations and investments were SEK 4,723m (3371). The direct operating cash flow was SEK 3.018m (2330).
The Group’s total CO2 Emissions along the value chain were reduced by 30% from the 2015 baseline and measured on a rolling 12 month basis.
A record quarter
“We achieved a record second quarter with strengthened market positions and strong performance in all divisions and major regions. Customer interest in gardening products increased and the construction market continued to rebound. Organic sales growth was 14% while operating profit increased by 21%. We are very pleased with the significant wins in strategically important segments during the quarter, including robotic lawn mowers and battery-powered products where we recorded organic growth of 27%.
The Husqvarna division achieved organic sales growth of 18%, with strong performance across all product categories and geographies, particularly in portable solutions and robotic lawn mowers. The performance of the Gardena Division in strategic growth markets, particularly in the South and North Europe, was extremely encouraging and compensated for the late start of the watering season by central Europe. Overall, Gardena’s organic sales growth was stable, compared to an exceptional second quarter last year. The Construction Division achieved organic sales growth of 31%, supported by an improvement in the market situation. The integration of the Blastrac acquisition is proceeding as planned.
Our strong growth, a favorable product mix and price increases, combined with good cost control led to an increase in operating profit to 2 645 SEK (2,191), excluding items affecting comparability. The increase was partially offset by higher costs for raw materials and logistics. The operating margin increased to 18.1% (16.3) for the second quarter, excluding items affecting comparability, and stood at 12.9% year-over-year. We continued to improve our working capital and direct operating cash flow increased to reach SEK 3.018m (2,330) during the first semester.
In light of the Covid-19 situation, strong demand combined with supply shortages continue to put pressure on global supply chains, including the availability of components. This limited to some extent the volumes that we were able to produce.
During the quarter, we unfortunately identified a faulty component on a printed circuit board used in a limited batch of robotic lawn mowers. We sincerely apologize for the inconvenience this has caused to our valued customers and resellers. We are fully committed to resolving this issue quickly, and to date the vast majority of customers have had the component in question replaced.
Accelerate the creation of sustainable value
Our performance this quarter reflects the strength of our long-term strategy and our execution continues at a rapid pace as we lead our industry in the transition to a low-carbon, resource-efficient economy. This means significant investments in innovation. With the recently launched Husqvarna CEORA ™ Professional Robotic Lawn Mower, we strive to transform the commercial lawn care market.
The Construction Division has announced a new battery-powered power cutter, the K1 PACE, setting a new standard offering performance comparable to gasoline cutters. These are two examples of revolutionary products and solutions that show our commitment to lead our industry towards more automation and electrification. As a Group, we have now reduced our absolute CO2 emissions along the value chain by 30% compared to the 2015 baseline. We are on track to meet our target of 35% reduction by 2025.
Looking ahead, based on our strong execution of strategy and our value proposition coupled with the fact that many people have developed an increased appreciation for the outdoors, we are well positioned to continue to grow and transform to meet the expectations of our customers.
Henric andersson, President and CEO
A conference call, moderated by Henric andersson, President and Chief Executive Officer, and Glen instone, CFO, will be held at 10:00 am CET at July 16, 2021.
To participate, please dial +46 (0) 8 505 583 74 (Sweden) or +44 333 300 9267 (UK) ten minutes before the start of the conference. Conference ID: Husqvarna.
The conference call is also available via https://husqvarna-group.creo.se/210716. A replay will be available later the same day.
Financial reporting dates 2021
October 20 Interim report January-September
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), PO Box 7454, SE-103 92 Stockholm
Regeringsgatan 28, +46 8 738 90 00, www.husqvarnagroup.com
Reg. No: 556000-5331
NASDAQ OMX Stockholm: HUSQ A, HUSQ B
This report contains inside information that Husqvarna AB is required to disclose under EU Market Abuse Regulation and Securities Law. The information was submitted for publication, through the contact person indicated above, at 07:30 CET on July 16, 2021.
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SOURCE Husqvarna AB