Gardening tools firm Husqvarna sees battery-powered sales boost

A Husqvarna robotic lawnmower is placed in its docking station in Humlegarden Park in Stockholm, Sweden, July 21, 2018. REUTERS / Anna Ringstrom / File Photo

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  • The stay at home trend has given Husqvarna boost a boost
  • Wants to accelerate the growth of battery-powered machines

STOCKHOLM, December 1 (Reuters) – Husqvarna (HUSQb.ST), the world’s largest manufacturer of electric garden tools, has increased its overall financial targets and growth ambitions for robotic lawnmowers and other battery-powered products.

The Swedish corporation, whose products range from trimmers and chainsaws to garden tractors and irrigation systems, and which has benefited from the pandemic-induced trend towards staying at home, announced late Tuesday that it is now aiming for 5% annual organic sales growth operating margin of 13%.

The market leader for robotic lawnmowers has not given a time frame for the new goals. In the first nine months of 2021, organic sales increased 15% and the operating margin was 15.1%.

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The previous financial targets, announced in 2019, were for revenue growth above industry average by 2 percentage points with an operating margin above 10%.

“I am proud that we can increase our growth and margin ambitions, also taking into account the recent temporary positive effects from the stay-at-home trend,” said CEO Henric Andersson before presentations to investors and the media on Wednesday.

“Global macro trends such as sustainability, electrification, automation and digitization offer enormous opportunities for the Husqvarna Group,” he said in a statement.

Husqvarna, whose competitors include Black & Decker (SWK.N) and Honda Motor (7267.T), gets the bulk of its revenue from gasoline-powered products, but is pushing to increase its share of battery-powered products.

The company aims to double sales of robotic lawnmowers, double the number of connected devices and increase the proportion of electrified products sold from 38% to 67% within five years.

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Reporting by Anna Ringstrom, editing by Helena Soderpalm Sherry Jacob-Phillips, Keith Weir

Our Standards: The Thomson Reuters Trust Principles.

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