Higher targets rev up chainsaw-maker Husqvarna (HUSQ B) stock
By Jenni Reid
12:10, 1 December 2021
Swedish power tool manufacturer Husqvarna (HUSQ B) was among the top large cap risers among Nasdaq Nordic firms on Wednesday, as the firm upped its growth targets.
Its stock was up 5.2% to SEK134 at 12:30 CET on the Swedish stock market. It has been trading at record highs since August after reporting increased profits in first-half results.
Husqvarna said its new annual organic sales growth target was 5%, which was previously 2 percentage points ahead of the industry average. Its operating margin target is now 13%, up from above 10%.
Described by Reuters as the world’s biggest garden power tool manufacturer, Husqvarna reported a £305m ($229m) profit for the full-year 2020.
This was down on £306m the previous year, as e-commerce sales grew but the business was disrupted by the early months of the pandemic. The company says it has since benefitted from more people doing at-home projects.
Its plan for growth over the next five years involves doubling sales of its solar-powered robot lawn mowers, selling more connected devices and increasing its share of electrified products versus petrol-powered tools.
“I am proud that we can increase our growth and margin ambitions even after taking account of the recent temporary positive effects from the stay-at home trend,” said CEO Henric Andersson.
“Global macro trends including sustainability, electrification, automation and digitalisation provide tremendous opportunities for the Husqvarna Group.”