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.
How will this be achieved:
- Markets are structurally showing an underlying annual growth of 2 – 3%
- Innovative solutions with lower total cost of ownership
- Market share gain
Outcome 2025: 0.5% (-0.6)
Organically, Food & Beverage grew by 1.1% during the year
while Laundry was slightly down, mainly related to the tariff
situation in the US.
Profitability EBITA margin
EBITA margin of 15 percent.
How will this be achieved:
- Volume growth
- Mix, focusing on high margin products, segments, markets, and customer care
- Manufacturing and distribution cost efficiency and digitalization
Outcome 2025: 12.1% (11.6)
Excluding items affecting comparability related to the efficiency program, both profit and profitability improved driven by a good performance in Laundry as well as in Food & Beverage in Europe.
Asset efficiency Operating working capital
Operating working capital below 15 percent of net sales.
How will this be achieved:
- Effective inventory management and continuous improvement of our logistic set-up
- Effectiveness in receivables collection
Outcome 2025: 16.3% (16.4)
Operating working capital as percent of annualized sales was flat compared to last year, mainly due to higher 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.
How will this be achieved:
- Increased profit
- Securing strong cash flow to repay net debt
Outcome 2025: 1.0x (1.4x)
Net debt/EBITDA was reduced during the year. The Group has a strong financial position.
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.
How will this be achieved:
- Increasing profit and solid ration net debt/EBITDA create the conditions for higher dividend
Outcome 2025: 30% (SEK 0,95 per share*)
*The AGM propose a dividend of SEK 0.95 (0.85) 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.