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• Net Sales: Declined by 3% organically in Q4 2024.

• Operating Income: Negative EBIT close to SEK700 million in Q4 2024.

• Cash Flow: Generated close to SEK7 billion in cash flow for the year.

• Inventory Reduction: Reduced inventories by SEK3.3 billion, FX adjusted, for the year.

• Net Debt: Reduced net debt with a net debt ratio of 2.5.

• Forest & Garden Division: Flat organic sales in Q4 with an operating margin of -5.2%.

• Gardena Division: Organic sales down 8% in Q4 with an operating margin of -30.7%.

• Construction Division: Organic sales declined 9% in Q4 with an operating margin of 5%.

• Cost Savings: SEK735 million savings realized in 2024, with a total of SEK1.1 billion from 2022 and 2023 programs.

• Dividend Proposal: SEK1 per share for 2024, a payout of 43% of reported earnings per share.

• Warning! GuruFocus has detected 6 Warning Signs with HSQVY.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Husqvarna AB (HSQVY) delivered a solid cash flow for the fourth quarter, generating close to SEK7 billion, primarily due to inventory reductions.

• The company achieved strong growth in professional robotic mowers and battery-powered products, with double-digit growth in these segments.

• Husqvarna AB (HSQVY) successfully implemented cost-saving programs, realizing SEK1.1 billion in savings from previously announced initiatives.

• The company announced a strategic partnership with Flex, enhancing competitiveness in the North American market and improving profitability and capital efficiency.

• Husqvarna AB (HSQVY) exceeded its Sustainovate 2025 carbon reduction target, achieving a 56% reduction in CO2 emissions, surpassing the target of 35%.

Negative Points

• Net sales declined by 3% organically in the fourth quarter, impacted by challenging market conditions and cautious behavior from dealers and retailers.

• The company's operating income was negatively affected by lower capacity utilization, promotional campaigns, and an unfavorable product mix, resulting in a negative EBIT of close to SEK700 million.

• The Gardena division experienced an 8% decline in organic sales and a negative operating margin of 30.7%, largely due to higher inventory levels and cautious retailers.

• The Construction division saw a 9% decline in organic sales in the fourth quarter, with weak demand in North America offsetting positive sales growth in Europe.

• Despite cost-saving efforts, the company's overall results and margins were down for the year, primarily due to lower volumes and an unfavorable product mix.