Husqvarna Groups Annual Report 2016
In 2016, we continued our aspirational journey that was started in 2014 - to achieve market leadership by 2020. Having delivered on the first promise to grow earnings and improve our margin, it’s now time to shift our attention to profitable growth. A firm focus on customer-centric innovation and market development will be key going forward together with continued operational efficiency and reinforced sustainability efforts.
The Husqvarna Group has been highly successful in improving its financial performance in recent years. By cutting product costs, improving the product mix and reducing complexity in the product offering, the operating margin rose to almost 9 percent in 2016. The Group is now taking the next step in its strategic development by putting a stronger emphasis on profitable growth and its financial targets have been adjusted to reflect this. Together with new sustainability ambitions and a strong vision, the course has been set to achieve the Group’s 2020 market leadership aspiration.
• Net sales amounted to SEK 35,982m, which was an unchanged level adjusted for changes in exchange rates.
• Operating income increased by 8 percent to SEK 3,218m (2,980) excluding items affecting comparability,* despite unfavorable currency impacts of approximately SEK -430m.
• The higher operating income was to a large extent driven by a more favorable mix and efficiency improvements
• Operating margin rose by 0.7 percentage points to 8.9 percent (8.2) excluding items affecting comparability.*
• Earnings per share after dilution rose to SEK 3.66 (3.28).
• Return on equity increased to 15.2 percent (14.6).
• The Board of Directors proposes a dividend of SEK 1.95 per share (1.65) for 2016.
“In line with the strategy and priorities we presented in 2014, we are now taking the next step, which is to put stronger emphasis on profitable growth. Kai Wärn, President and CEO”