The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Fredrik Moregard - Pareto Securities AS, Research Division - Analyst
: So first of all, I was just hoping you could help us with the comments you made about Gardena. So the division has clearly a very strong growth
momentum in the fourth quarter. But you say that there's been some pre-buying effect? Is it possible for you to quantify that impact in the fourth
quarter?
Glen Instone - Husqvarna AB (publ) - President of Forest & Garden Division, Acting CFO and Senior VP of Finance, IR & Communication
It's actually quite small, Fredrik, but we're not concerned about that. It's very much the retailers coming from a low level of inventory and having
some level of season preparation themselves. So it's a small element to the growth in the fourth quarter that we would attribute to that.
Question: Fredrik Moregard - Pareto Securities AS, Research Division - Analyst
: And how happy would you say that you are with the current position? Is it according to plan? Or would you like to build even a bit more inventories
here at the end of the year?
Question: Fredrik Moregard - Pareto Securities AS, Research Division - Analyst
: Sure. I appreciate that. Just a final question then on channel inventories. Could you care to comment what you're seeing on the channel inventories
across various regions? Or are there in the regions or product categories that stand out in terms of either being close to or actually being rebalanced
or being sort of low from a historical perspective as we go into the study of season here?
Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst
: It's Johan. Just a question coming back to the strategic initiatives, you obviously pointed to price being the most important factor to offset the raw
material of SEK 1 billion or so. Will price also be able to compensate for the additional strategic investments above the sort of cost savings that is
all coming through?
Glen Instone - Husqvarna AB (publ) - President of Forest & Garden Division, Acting CFO and Senior VP of Finance, IR & Communication
The way we try and look at that a little bit simplistically, we would like to think that the mix and the market-driven improvements are going to
come through sufficiently and then justify the strategic initiatives, Johan. That's probably the best way to look at this. So price is not there to offset
the strategic investments.
Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst
: And will we see any Gardena sort of through the channels of Orbit already this year? Or is it too early?
Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst
: Okay. Good. And then sort of a general question about this electrification. You mentioned the targets and where you are today, et cetera. I think
on the wheel side, considering what you have closed down and the growth of the robotics, I guess you're sort of ahead of the overall lawn mowing
market in terms of electrification. But if you look at the handheld side, obviously, you have a significantly smaller share of handheld battery products
out there and the big chunk is still petrol powered.
But we are obviously seeing a lot of competitors going all in battery-powered products, mainly more on the consumer side, obviously, still like
electronics. Are you -- do you think you are well ahead to protect your position on sort of the handheld business in this transition to electrification
there? Or is there more you need to do and accelerate the investments there?
Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst
: But you don't feel worried about what you're seeing on the sort of consumer side of handhelds that might have an implication for your professional
business in a few years when I guess the whole market turning electrical?
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FEBRUARY 03, 2022 / 9:00AM, HUSQb.ST - Q4 2021 Husqvarna AB Earnings Call
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