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 average annual sales increase of at least 5 percent, through a combination of organic growth and smaller acquisitions.

 

The goal was adjusted in December 2020 (Previously: annual sales increase of at least 5 percent).In 2019, net sales increased by 52 per cent (33), positively impacted by the acquired businesses FTZ and Inter-Team in September 2018. Organic growth was 2 per cent as a result of stable sales in the Nordic region and a number of minor acquisitions in Sweden and Norway

EBIT margin

The target is to reach adjusted EBIT margin of 10 percent.

The goal was adjusted in December 2020 (Previously: EBIT of at least 10 percent).The EBIT margin increased to 6 per cent (5) for 2019. The margin was positively impacted by lower negative items affecting comparability, cost savings and measures in unprofitable operations. Higher purchasing prices due to a strong EUR and generally lower margins in the acquired Inter-Team than the Group as a whole had a negative effect on the margin.

Net debt/EBITDA

The target is that net debt/ EBITDA shall be in the range 2.0-3.0 times.

 

The goal was adjusted in December 2020 (Previously: a maximum of 2.0 long-term). Net debt/EBITDA was 3.68 (6.44) for 2019). The high ratio is mainly due to a continued high net debt in 2019, SEK 3,709 M (4,098), due to the acquisition of FTZ and Inter-Team in 2018.

 

 

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. 

 

The definition of how the assessment of the proposed dividend is made was clarified during December 2020 (Previously: consideration is primarily taken to investment needs, but also to other factors deemed significant by the Board). The Board proposes no dividend for 2019 (0.00). Consideration has 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 that at least 50 per cent of profit after tax should be paid as a dividend.