Husqvarna Group Speeds Up its Strategic Transformation
Husqvarna Group is increasing investments in the company's key sustainable value-generating levers: robotic mowers, battery, watering, and professional products, in order to expedite its strategic transformation. By 2025, incremental investments will total SEK 400 million per year. Husqvarna Group will execute significant structural changes and savings to support these investments and become even more competitive.
Husqvarna Group has been on a journey for a few years to reposition its business to be more premium and professional while shifting its focus to solutions that are more sustainable, smarter, and connected.
Because of this change, the business has grown and generated more revenue. To improve performance in the medium to long term, it is important to invest in products like robotic mowers, batteries, watering systems, and professional products that have the most potential to create value in the future. So, the company will put an extra SEK 400 million into these areas every year. This will be done until 2025.
As part of this transformation, the Group will make changes to its value chain for gasoline-powered consumer goods, such as lowering the amount of installed production capacity.
In connection with this, the Group will stop selling low-margin gasoline-powered consumer goods worth about SEK 2 billion per year by 2024. Husqvarna Group will also speed up needed changes in capabilities, improve organisational efficiency, simplify structures, and cut costs.
When these changes are fully in place in 2025, they will save about SEK 800 million a year in costs and a net of SEK 400 million after the increased investments in the sustainable value creation levers.
The efficiency measures also entail one-off costs of approximately SEK 2 billion (of which SEK 0.9 billion are cash costs). The Group's workforce will be reduced by approximately 1,000 positions, whereof the vast majority relates to the accelerated petrol-to-battery shift.
Henric Andersson, CEO and President, Husqvarna Group, said:
"We are executing a winning strategy, and I am proud of the achievements made by our organisation so far on this transformation journey. It is now time to take the next step to make our company even more sustainable, competitive, and stronger. This is a strong example of how we are leading our industry in the transformation to sustainable solutions with a lower carbon footprint."
Source: Husqvarna Group