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