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.
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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%
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.