Husqvarna AB Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gustav Hageus - SEB - Analyst : Thanks for taking my questions. If we start with the announcement from last night with the exit of Orangeburg, I guess, it does come at the time when we see a lot of debate on perhaps reshoring in the US rather than sell those assets. And given that you take a SEK250 million charge, I understand most of them are costs, not write-downs. But you also say that, if I understand correctly, that OpEx will not improve following this change in 2025, but it will be slightly higher. And you don't seem to take a capital gains then despite dollar depreciation and so forth. So I'm just wondering if has this been a discussion with your lenders that this would be a way forward to perhaps relieve your balance sheet? Or is this purely your own sort of strategic decision?

Question: Gustav Hageus - SEB - Analyst : All right. And may I ask -- we understand you've been quite direct now the season in your discussions with suppliers that you are keen to bring down costs from them in your procurement. Could you elaborate a bit on if these discussions have been fruitful? And any potential impact to your gross margins as you see it going into 2025?

Question: Gustav Hageus - SEB - Analyst : Okay. So yeah, let's leave it that then. But then going to robotics then, as you mentioned, you're rolling out a lot of boundary-free products here. And so are most of your competitors, I assume. So can you give us some idea what you think pricing will be in the legacy categories in 2025? Will there be a material price decrease in these boundary-wire products? And also I think you mentioned previously that your Gardena free has -- you've had the ambition to have listings at EUR1,500 or so in retail. Could you give us some color on if those price points have been altered in any way following discussions and sell-in period now with your retailers?

Question: Gustav Hageus - SEB - Analyst : And in terms of pricing in the legacy categories, not just yours, but in the market, do you expect price to be down in boundary-wire products this year? And if you can give us a rough indication on ballpark amount?

Question: Gustav Hageus - SEB - Analyst : Okay. Thank you.

Question: Bj÷rn Enarson - Danske Bank - Analyst : A question also on robotics. I mean, you have this split between the Pro and Entry and mid to high. Is it possible to get the -- how those looked like a year ago? I mean, it would be interesting to see growth levels or how entry has decreased to get a better flavor on the segment development.

Question: Bj÷rn Enarson - Danske Bank - Analyst : And maybe you've said it and I just missed it, but the market -- how was market growth for the different segments or in total?

Question: Bj÷rn Enarson - Danske Bank - Analyst : And consumer market development last year?

Question: Bj÷rn Enarson - Danske Bank - Analyst : Okay. Got it. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2025 / 9:00AM, HUSQb.ST - Q4 2024 Husqvarna AB Earnings Call

Question: Gustav Hageus - SEB - Analyst : Thanks for taking my follow up. I have two. Firstly, how to think about Q1 now into 2025. I think we're facing 40% negative growth or organic growth 12% two years back. If I recall correctly, it was a gradual improvement in Q1 last year. So how do you see the market playing out for you knowing -- going into the early part of '25?

Question: Gustav Hageus - SEB - Analyst : If I might add one question on Construction. Could you give us a comment on competition and pricing in the aftermarket and service part of that business? I think you previously referenced that there has been some pressure in that area from perhaps Asian competitors. That would be interesting.

Question: Gustav Hageus - SEB - Analyst : I appreciate that. Thank you, Pavel.

Question: Fredrik Ivarsson - ABG Sundal Collier - Analyst : One question on robotics -- one more, I should say. With the Q1 obviously being a sell-in quarter and now you're launching a bunch of new products, as you said, within, I guess, both Pro robotics and Residential, my question is more targeted towards residential. You said retailers have shown some good interest in these new products. Does this mean that you expect growth within residential robotics in Q1?

Question: Fredrik Ivarsson - ABG Sundal Collier - Analyst : Okay. So it almost sounds like the retailers are a bit maybe cautious in terms of building up inventories ahead of the season due to the, I guess, macro uncertainties.

Question: Fredrik Ivarsson - ABG Sundal Collier - Analyst : Yeah, that's fair.