Gardena launches a new organization
A challenging first half of the year leads to a slight decline in sales for Gardena, but at the same time also enables the introduction of a forward-looking organizational structure
Tobias M. Koerner, Senior Vice President Go-to-Market, (left) and Pär Åström, President Gardena Division, have presented the half-year results 2023 of Gardena.
In the first half of 2023, sales of Gardena Division were slightly down at 9,351 Swedish kronor (911 million euros) compared to 9,735 Swedish kronor (930 million euros) in the same period of the previous year. At the end of 2022, Gardena had reported a significant increase in sales to 13,606 Swedish kronor (1,280 million euros) thanks to the expansion of its business in North America.
“Market conditions remain difficult in many ways. The first half of the year was characterized by continuing consumer restraint and rigid inventory management by our retail customers. For the first time in many years, we did not experience growth. We responded to these challenges with decisive cost control to increase our competitiveness. And we have used the situation to reposition ourselves for the future,” says Pär Åström, President of the Gardena Division, commenting on the current development.
Even though the situation has eased in terms of component availability, the costs of raw materials, labor, transport and energy remain at a high level.
The entire customer experience conceived as one process
The Gardena Division is introducing a new organizational structure on 1 September 2023, in order to reflect the large growth and scope of the business over the past few years and to position the company capability-wise for the future.
In addition to the continued business unit Orbit, four new business units will be responsible for their respective product segments, from development and sourcing to manufacturing. The management of the business units will be assumed by longtime experienced leaders from the company's own ranks – Reinhard Pompe for Watering, Thomas Grein for Handtools, Martin Lienhard for Battery & Electric, and Joachim Heppler for Robotics & Smart. They have all been appointed members of the new Gardena Division management team.
The face to the customer – both consumer and trade – is the new Go-to-Market unit under the leadership of Tobias M. Koerner. Its responsibility as a cross-sectional function extends across marketing, sales and logistics to aftersales service.
“In the new structure, we manage the customer experience for both our retail customers and consumers as a common process – from advertising to ordering, delivery, sales support and aftersales service. For retailers, we see the direct connection of sales and logistics in particular as a significant advantage, as it allows planning processes to be even better coordinated. This increases our flexibility even in the event of short-term fluctuations in demand," explains Tobias M. Koerner, Senior Vice President Go-to-Market of Gardena Division.
The integration of the US company Orbit, acquired at the end of 2021, was successfully continued. With a clear focus on irrigation expertise and the two core brands Orbit and B-hyve, this business unit was also strategically realigned under the continued leadership of Stuart Eyring.
Good progress on sustainability targets
In terms of sustainability targets, both Husqvarna Group and Gardena made good progress. The parent company has set a 35 percent reduction target in carbon emissions for Scopes 1, 2 and 3 by 2025 compared to the 2015 baseline. As of the 2022 half-year, the reduction achieved was already 38 percent. Gardena Division has contributed to this by reducing its emissions by 78 percent. Husqvarna Group has committed itself to a goal of zero emissions on a science-based basis by 2050. The Gardena Division aims to achieve this target even earlier.
In addition, Gardena continued its partnership with UNICEF, the United Nations Children's Fund, which has been in place since 2018, this year and supports its global water, sanitation and hygiene programs. The company's contribution will provide more than 290,000 children and families with access to clean drinking water by the end of 2023.
“In March of this year, as part of a joint field trip to Bangladesh, I was able to learn about UNICEF's work in the field and its vital importance," says company spokesperson Heribert Wettels, emphasizing the importance of personal impressions. “Safe drop-in centers for the many street children in the capital Dhaka, schooling for Rohingya children in the large refugee camps and the establishment of drinking water access points in rural villages are among the many aid programs in the country,” Heribert Wettels adds.
Focus areas for the 2024 season
In the coming season, Gardena will set a special focus on specific topics for its market-facing activities.
On the one hand, on the new Micro-Drip-System for efficient drip irrigation in combination with smart control, which has already been launched this year. In view of increasingly dry periods, this solution can make an important contribution to the responsible use of water as a resource.
Another focus is on LONA Intelligence. With AI-based technology, the popular SILENO robotic mowers adapt to individual gardens through learning and mapping.
In addition, a number of new innovative products will be launched to the market for the coming gardening season.
The new wall-mounted hose box expands the range of devices with the Power for All Alliance battery system.1 Conveniently at the touch of a button via remote control, the hose can be rolled up automatically and evenly. The multi-cleaner, which is also battery-powered and versatile, gently cares for different surfaces with various brushes. The new battery-powered weed brush gets to grips with stubborn stains – without the use of chemicals. And the Gardena Cleansystem offers home and garden owners comprehensive equipment for wet cleaning outdoors.
1 Power for All Alliance is one of the largest cross-brand 18V battery systems from leading manufacturers worldwide, providing solutions for the whole home. www.powerforall-alliance.com.
Note: Gardena Division sales in the January - June 2023 amounts to 9,351 million Swedish crowns according to the half-year report of Husqvarna Group. For information purposes, the conversion into euros is based on the average exchange rate for the reporting period (1 EUR = 0.0974439003285321 SEK).
For over 50 years Gardena has provided everything passionate gardeners need. The broad assortment of products offers innovative solutions and systems for watering, lawn care, tree and shrub care and soil cultivation. Today, Gardena is a leading European supplier of high-quality gardening tools and distributed in more than 100 countries worldwide. Gardena is a brand of Husqvarna Group. Gardena Division has 3,450 employees worldwide. Further information on gardena.com.