Dec 10 (Reuters) - Husqvarna targets average annual organic sales growth of 3% to 5% over a business cycle, the garden equipment maker said on Wednesday ahead of its investor day presentations. The
Husqvarna Targets 3-5% Organic Sales Growth Annually
Dec 10 (Reuters) - Husqvarna targets average annual organic sales growth of 3% to 5% over a business cycle, the garden equipment maker said on Wednesday ahead of its investor day presentations.
The group also targets an operating margin above 10% and a return on capital employed of 15% through the cycle, timeline of which is not specified. It reiterated its policy of paying out 40% of net income as dividends.
Its earlier financial goals, announced in 2021, were for yearly organic sales growth of 5% and an operating margin of 13%.
Husqvarna said it would carry out a cost-cutting programme between 2026 and 2030 to enhance the efficiency of its operations.
The plan is expected to result in annual run-rate savings of 4 billion Swedish crowns ($427 million) by the end of 2030. During the process, Husqvarna's reported operating income will be impacted by non-recurring costs totalling 1.5 billion crowns, it said.
($1 = 9.3672 Swedish crowns)
(Reporting by Agnieszka Olenska and Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak)
