Financial targets

Gränges should grow at least in line with the market, generate a return on capital employed of 15–20 per cent, have a net debt of 1-2 times adjusted EBITDA, and pay a dividend of 30–50 per cent of the profit for the year.

Growth

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

 

 

Comment: In 2018, sales volume increased by 0.5 per cent, which was higher than the growth in end markets.

 

Return on capital employed

Generate a return on capital employed of 15–20 per cent over time.

 

 

Comment: In 2018, return on capital employed decreased by 0.2 percentage points to 16.5 per cent. The increased adjusted operating profit was offset by higher capital employed driven by expansion investments in the US.

 

Capital structure

Have a net debt which should normally be 1–2 times adjusted EBITDA over the last 12 months period.

 

 

Comment: In 2018, net debt increased by SEK 201 million to SEK 2,494 million, after a reduction in 2017. The increase is a result of capacity investments in the US. On 31 December, 2018, net debt amounted to 1.8 times adjusted EBITDA and was within the target range.

 

Dividend policy

Pay a dividend of 30–50 per cent of the profit for the year. Decisions on dividends will reflect the company’s financial position, cashflow, and outlook.
 

 

 

Comment: The Annual General Meeting 2019 resolved, in accordance with the Board’s proposal, on a dividend of SEK 3.20 per share for the 2018 fiscal year. This is an increase of 7 per cent compared to the previous year, and corresponds to 35 per cent of the profit for 2018.