**Husqvarna: A Year of Challenges and Resilience**
In the world of outdoor gardening machinery, Husqvarna is a name that stands out. Known for its high-quality chainsaws, lawn mowers, and hedge trimmers, the company has built a reputation for reliability and performance. However, the past year has not been without its challenges for the Swedish firm, as it saw a significant drop in turnover due to an export slump. Despite this setback, Husqvarna managed to increase its operating profit and remains optimistic about its future, even in the face of the ongoing coronavirus pandemic and the uncertainties surrounding Brexit.
**A Year of Decline: Turnover Falls by Over 10%**
In the financial year ending December 31, 2019, Husqvarna experienced a 10.9% decrease in turnover, with revenue dropping from £231m to £205.7m. The main culprit behind this decline was a drop in export sales of the company’s robotic lawn mowers. This unexpected slump in sales had a significant impact on Husqvarna’s bottom line, leading to a decrease in overall revenue.
**Rising Above: Boosting Operating Profit**
Despite the decrease in turnover, Husqvarna managed to increase its operating profit during the same period. The company reported an operating profit of £7.8m, up from £4.2m in the previous year. This increase can be attributed to a variety of factors, including a low operating profit in 2018 due to adverse foreign exchange rates and pension scheme costs.
**Navigating Uncertainty: Adapting to the Pandemic**
As the coronavirus pandemic swept across the globe, Husqvarna found itself facing a new set of challenges. The company’s directors were quick to respond, implementing measures to ensure the safety and well-being of their employees. Despite the disruptions caused by the pandemic, Husqvarna’s sales levels remained strong in 2020, with the factory operating at near-normal capacity. The company’s proactive approach to the crisis has helped it weather the storm and emerge stronger on the other side.
**Preparing for Brexit: Mitigating Potential Impacts**
In addition to the challenges posed by the pandemic, Husqvarna has also been closely monitoring the potential impacts of Brexit on its business. The company has been actively engaging with its customers to understand how the UK’s departure from the EU could affect its supply chain. By making strategic changes to its operations, including optimizing payment terms and improving working capital for supply firms, Husqvarna has positioned itself to navigate the uncertainties of Brexit with confidence.
**Looking Ahead: A Bright Future for Husqvarna**
Despite the challenges of the past year, Husqvarna remains optimistic about its future. The company’s resilience in the face of adversity, coupled with its proactive approach to addressing external threats, bodes well for its continued success in the outdoor gardening machinery market. As Husqvarna continues to innovate and adapt to changing circumstances, it is poised to maintain its position as a leader in the industry for years to come.