Financial targets

Gränges’ long-term financial targets state that Gränges should grow at least in line with the market, generate a return on capital employed of between 15–20 per cent, have a net debt in the range of one to two times EBITDA, and pay a dividend of between 30–50 per cent of the profit for the year.

Increase sales volume at least in line with the company’s end-markets.


Outcome 2016

The acquisition in the US was consolidated into Gränges’ accounts from August 22, which resulted in a considerable increase in sales from the third quarter of 2016. Excluding the acquired business, sales volume increased by 7.6 per cent in 2016, which was higher than the growth in end-markets.

Net debt should normally be between 1–2 times EBITDA over a 12-month period.


Outcome 2016

Net debt increased by SEK 2,447 million in 2016 to SEK 2,722 million, as at December 31, due to the acquisition in August, which was entirely financed with loans. Net debt amounted to 2.1 times EBITDA as at December 31, 2016. Gränges’ assessment is that net debt will return to the target range during financial year 2018 at the latest.

Target is to generate a return on capital employed of 15–20 percent over time.


Outcome 2016

Return on capital employed decreased 0.7 percentage points to 17.5 per cent in 2016. The acquired business contributed to improved adjusted operating profit and higher capital employed.

Target is to pay a dividend of between 30–50 per cent of the profit for the year over time. Decisions on dividends will reflect the company’s financial position, cash flow, and outlook.


Outcome 2016

A dividend of SEK 2.40 per share is proposed. This is an increase of 20 per cent on the previous year, and corresponds to 36 per cent of the profit for the period in 2016.