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.


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



Comment: In 2020, sales volume increased by 0.9 per cent. Excluding acquisitions sales volume decreased by 3 per cent, which was better than the decline of 7 per cent in end-markets. This was mainly driven by increased market share and successful ramp-up of new production capacity in the HVAC and Other business.


Return on capital employed

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



Comment: In 2020, return on capital employed decreased by 3.6 percentage points to 8.1 per cent. This was driven by lower adjusted operating profit due to challenging market conditions following the COVID-19 pandemic, in combination with increased assets from the expansion investments.


Capital structure

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



Comment: In 2020, net debt decreased by SEK 173 million to SEK 3,292 million. The net debt impact from acquisitions and expansion investments was negative with SEK 2.6 billion during the year. This was more than o.set by adjusted cash flow before financing activities of SEK 1.2 billion and proceeds from the rights issue of SEK 1.7 billion. On 31 December, 2020, net debt amounted to 2.2 times adjusted EBITDA.1)


1) Includes adjusted EBITDA for acquisitions as a part of Gränges Group for 12 months.


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 Board of Directors proposes a dividend of SEK 1.10 (–) per share for the 2020 fiscal year, corresponding to 32 per cent of the profit for the year 2020. The dividend for the fiscal year 2019 was withdrawn due to the COVID-19 pandemic and its potential financial impact on Gränges’ operations and results.