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 2024: -0.1% (2.6)
Organically, sales were flat during the year, partially due to the phase out of some low-margin product categories. The somewhat weak sales compared to target was due to lower sales in Food & Beverage in the US and in APAC-MEA. Food & Beverage Europe and Laundry grew organically.
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 2024: 11.6% (11.1)
Profit and profitability took another step forward, driven by improved profitability in Laundry and Food & Beverage in Europe. Price and lower material costs also contributed.
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 2024: 16.4% (18.1)
Operating working capital as a percent of annualized net sales improved, 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.
How will this be achieved:
- Increased profit
- Securing strong cash flow to repay net debt
Outcome 2024: 1.4x (0.9x)
Net debt/EBITDA was reduced during the year, but was higher at the end of the year compared to the previous year due to acquisitions.
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 2024: 30% (SEK 0,85 per share)
The AGM approved a dividend of SEK 0.85 (0.80) 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.