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STOCKHOLM, Dec. 1 (Reuters) – Husqvarna (HUSQb.ST), the world’s largest manufacturer of power garden tools, has raised overall financial targets and growth ambitions for robotic lawn mowers and other battery-powered products .
The Swedish group, whose products range from mowers and chainsaws to garden tractors and irrigation systems, and which has benefited from the stay-at-home trend caused by the pandemic, said on Tuesday evening it was now targeting a annual organic sales growth of 5% and an operating margin of 13%.
The robotic lawn mower market leader did not provide a timeline for the new targets. In the first nine months of 2021, organic sales increased by 15% and operating margin by 15.1%.
Previous financial targets, announced in 2019, targeted sales growth above the industry’s average growth by 2 percentage points with an operating margin above 10%.
“I am proud that we can increase our growth and margin ambitions even after taking into account the recent temporary positive effects of the home support trend,” CEO Henric Andersson said ahead of investor and media presentations on Wednesday .
âGlobal macro trends including sustainability, electrification, automation and digitization offer huge opportunities for the Husqvarna Group,â he said in a statement.
Husqvarna, whose competitors include Black & Decker (SWK.N) and Honda Motor (7267.T), derives the bulk of revenue from gasoline-powered products, but is working to increase its share of battery-powered products.
The company said it aims to double sales of robotic lawn mowers, double the number of connected devices and increase the share of electrified products sold to 67% from 38% in five years.
Reporting by Anna Ringstrom, editing by Helena Soderpalm Sherry Jacob-Phillips, Keith Weir
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