The Husqvarna Group said the 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 statement, the company, which is involved in diverse product range such as robotic lawnmowers, chainsaws, trimmers, riding lawnmowers, and watering solutions noted that 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”, said the statement.
“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”, said the company.
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.
