Electrolux Professional Group’s goal is to create value for its stakeholders through profitable growth. The Board of Directors of Electrolux Professional Group 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.
Outcome 2023: 2.6% (16.9)
There was good growth in the first half of the year, while sales declined in the second half. The somewhat weaker sales compared to target was mainly driven by the US. Food & Beverage declined by 1% and Laundry grew by 9.7%.
Profitability EBITA margin
EBITA margin of 15 percent.
Outcome 2023: 11.1% (10.1)
Profit and profitability took another step forward, mainly driven by price, but also lower material and transportation cost.
Asset efficiency Operating working capital
Operating working capital below 15 percent of net sales.
Outcome 2023: 18.1% (16.7)
Operating working capital as a percent of annulized net sales is still high, but it improved during the second half of the year, mainly due to a substantial reduction in inventory.
Capital structure : Net debt/EBITDA ratio
Leverage ratio below 2.5x Net debt/EBITDA. Higher levels may be temporarily acceptable in the event of acquisitions, provided there is a clear path to de-leveraging.
Outcome 2023: 0.9x (1.5x)
Cash flow has been very strong during the year which made it possible to significantly reduce borrowings.
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.
Proposal 2023: 30% (SEK 0,80 per share)
The Board proposes a dividend of SEK 0.80 (0.70) per share which is in line with the dividend policy.
Electrolux Professional AB was listed on NASDAQ Stockholm on March 23, 2020, so comparative figures for previous financial years are not available.