Long-term financial targets

At the Capital Markets Day on 21 June 2022, Gränges presented a new long-term plan for sustainable growth. As a result of the new strategy, Gränges also updated its financial targets for profit growth, profitability, capital structure and dividend.

Profit Growth

Average yearly operating profit growth above 10 per cent.
Outcome: In 2023, operating profit increased by 34 percent primarily driven by higher prices towards customers and improved productivity. The increase in operating profit was partly offset by continued inflationary pressure on operating costs as well as lower sales volume.

Profitability

Return on capital employed above 15 per cent.
Outcome: In 2023, return on capital employed increased by 2.8 percentage points to 12.2 per cent. The increase in return on capital employed was primarily driven by increased adjusted operating profit and reduced working capital levels due to improved inventory management and reduced metal prices.

Capital structure

Financial net debt normally between 1–2 times adjusted EBITDA.
Outcome: In 2023, financial net debt decreased by SEK 1 141 million to SEK 2,741 million, corresponding to 1.1 times adjusted EBITDA. Increased adjusted EBITDA and inventory management contributed to the decrease in financial net debt.

Dividend

Dividend between 30–50 per cent of profit for the year.
Outcome: The Board of Directors has proposed a dividend of SEK 3.00 (2.50) per share for the 2023 fiscal year, corresponding to 32 per cent (38) of the profit for the year.