Financial goals

Mekonomen Group’s overall goal is to develop with high profitability and thereby generate value growth for the shareholders.

Sales growth

The target is to achieve an annual sales growth of at least 5 per cent, as a combination of organic and acquired growth.

 

In 2018, sales growth was 33 per cent (1), positively impacted by the acquired businesses FTZ and Inter-Team. Sales excluding FTZ and Inter-Team increased by 4 per cent, positively affected by a number of smaller acquisitions, but negatively impacted by the occasionally weak demand for car parts and workshop services in the second half of the year.

EBIT margin

The target is to annually achieve an EBIT margin in excess of 10 per cent.

The EBIT margin decreased to 5 per cent (9) for 2018. The EBIT margin was negatively impacted by generally lower margins in acquired Inter-Team than the Group as a whole, initially rising costs in connection with acquisitions, higher purchasing expenses and items affecting comparability.

Equity/assets ratio

The target is that the equity/assets ratio shall not in the long term be less than 40 per cent.

 

The equity/assets ratio amounted to 35 per cent at 31 December 2018 compared with 43 per cent at 31 December 2017.

 

Net debt/EBITDA

The target is that net debt/ EBITDA shall not in the long term exceed 2.0.

 

Net debt/EBITDA was 6.44 (2.03) for 2018. The increase is mainly attributable to an increase in the net liability to SEK 4,098 M (1,444) attributable to the acquisition of FTZ and Inter-Team.

 

 

Dividend ratio

The Board’s intention is that Mekonomen Group will pay dividends corresponding to not less than 50 per cent of profit after tax. When deciding on dividend proposals, consideration is primarily taken to investment needs, but also to other factors deemed significant by the Board.

 

The Board proposes no dividend for 2018 (SEK 4.46 per share 2017). Consideration has then been taken to how to best prioritise between the company’s goals to reduce debt and pay dividends. The Board continues to support the long-term goal of paying not less than 50 per cent of the earnings as dividends.