Financial targets
Investor Relations

Financial targets

Alligo’s financial targets focus on profitable growth, financial stability and dividend. The targets have been set based on Alligo’s conditions during a medium-term strategy period.

Growth

>5%

Organic growth

Average organic growth shall be more than 5 per cent per year over a business cycle. Further growth shall also be made through acquisitions.

2022

Organic growth was higher than the target of 5 per cent in all countries and contains an inflation component. Growth was driven mainly by larger industrial customers in Finland and Norway, as well as small and medium-sized enterprises in Sweden. Sales to larger industrial customers in Sweden were negatively affected by disruption to logistics and sales processes as a result of the migration to a common business system and the coordination of logistics.

Profitability

>10%

EBITA margin

The EBITA margin shall be more than 10 per cent per year.

2022

Improved EBITA margin was observed across all markets and was driven primarily by growth, better gross margins and synergies. Work is ongoing to establish a more favourable customer mix in Finland and Norway and to further strengthen the sales and assortment management to achieve the target of an overall EBITA margin of 10 per cent.

Indebtedness

<3X

Ratio of net operational liabilities to EBITDA excl. IFRS 16

Ratio of net operational liabilities to EBITDA excl. IFRS 16 shall be less than a multiple of 3.

2022

The higher net liabilities compared with 2021 are the result of integration investments, acquisitions, dividends and build-up of inventories. The strong financial position provides a solid foundation for continued growth and means we are well prepared to take advantage of future acquisition opportunities.

Dividend

30-50%

Dividend from net profit

The dividend as a percentage of net profit shall be 30–50 per cent, taking into account other factors such as financial position, cash flow and growth opportunities.

2022

The AGM approved the proposed dividend for the year of SEK 3.00 per share, equivalent to 31 per cent of earnings per share for continuing operations and the financial year. The current financial position and profitability are considered to provide sufficient scope for the proposed dividend.