In its 2022 annual report filed March 14, Husqvarna stated the potential impact growing online sales among its business segments could have on it financials and also reported on its current inventory levels and investments.
Future of Online Sales
In the Risk Management portion of the report, Husqvarna outlined how a failure to align itself with the growing trend of online shopping could hurt its business, saying:
“Internet commerce is increasing and becoming of increasing importance to the Group, partly
as the result of increased online sales activities of trade partners in both the dealer and retail channel but also from growing direct sales with major online resellers and, more recently, the start of ‘direct-to-consumer’ e-commerce channels run by the divisions. This trend has been accelerated in recent years due in part to the COVID-19 pandemic, with end-customers preferring to order products online to avoid personal exposure. This shift to online purchasing brings both opportunities and risks. The challenge is to ensure that relevant products are offered to all customer segments in all relevant purchasing channels. The failure to build or maintain strong supply relationships with key online resellers can have significant negative effects on volumes and profitability.”
Inventories
Husqvarna’s total inventories were valued at $1,856.97 million as of Dec. 31, 2022, up 37.8% from $1,347.54 million at the same point in 2021.
The value of its finished products saw the greatest year-over-year increase at 43%, while its work in progress inventories saw the smallest increase at 38%. Husqvarna’s cost of supplies and raw materials in 2022 totaled $1,091.5 million, up 12.4% from $971.2 million in 2021.
Investments
Husqvarna spent $8.2 million on acquisitions of subsidiaries and operations, down from $377.9 in 2021.
Proceeds from sales of property, plant and equipment in 2022 came in at $23.1 million (up from $770,000 in 2021). Total investment in property, plants and equipment and intangible assets were valued at $225.13 million vs. $242.4 million in 2021.
