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Financial goals

Electrolux Professional’s goal is to create value for its stakeholders through profitable growth. The strategy focuses on four pillars, built on a foundation of operational excellence to improve sales productivity and cost efficiency within the supply chain. These four pillars are: grow via innovative sustainable solutions, grow in chain businesses, boost Customer Care for higher margins, and leverage “The OnE”-approach and drive digital transformation.

The Board of Directors of Electrolux Professional has adopted the following medium-term financial targets:


Net sales growth

Organic annual growth of more than 4 percent over time, complemented by value accretive acquisitions.

Average performance 2017–2019: 3.1%

Outcome 2021: 10.6%
Although still affected by the pandemic, the hospitality industry bounced back in 2021, sales in Food and Beverage increased by 14.3% while Laundry was almost back to pre-pandemic levels with a sales increase of 5.5%.


Profitability EBITA margin

EBITA margin of 15 percent.

Average performance 2017–2019: 13.1%

Outcome 2021: 8.4%
The pandemic continued to have a negative impact on sales volumes and profitability, but short-term and structural costsaving measures mitigated part of the sales decline, thus EBITA improved substantially during 2021.


Asset efficiency Operating working capital

Operating working capital below 15 percent of net sales.

Average performance 2017–2019: 15.9%

Outcome 2021: 14.9%
Working capital as a percent of net sales improved during the year. This is due to improvements in inventory and the reduction of receivables in relation to net sales.


Capital structure : Net debt/EBITDA ratio

Leverage ratio below 2.5x Net debt/EBITDA. Higher levels may be temporarily acceptable in case of acquisitions, provided a clear path to de-leveraging.

Average performance 2017–2019: 

Outcome 2021: 1.9x
The net debt/EBITDA ratio was 1.9 at the end of 2021 which means that we are better or in line with our target. Net debt/EBITDA increased due to the acquisition of Unified Brands. In total, net debt increased from SEK 549m on December 31, 2020 to SEK 1.705m as of December 31, 2021.


Dividend Policy

Approximately 30% of the annual income of funds legally available for dividend payouts. The timing, declaration, and number of future dividends will depend on the company’s financial situation, earnings, capital requirements, and debt service obligations.

Outcome 2021: 30% (SEK 0,50 per share)
The AGM approved the dividend proposal of SEK 0.50 per share which is in line with the dividend policy.

 

Financial goals 2019-10-16T07:23:07+00:00 Electrolux Professional