Financial targets and framework

Clas Ohlson’s financial targets* include organic growth of 5 per cent per year and an operating margin of 7-9 per cent annually, including IFRS16. In addition, net debt in relation to EBITDA is to fall below two times and the dividend is to comprise at least 50 per cent of earnings per share after tax considering the financial position.

Sales

Clas Ohlson targets to achieve an annual organic sales growth of 5% per year.

In 2021/22 sales increased by 6 per cent to 8,784 MSEK (8,284). Organic sales increased by 4 per cent compared with the preceding year. Sales in comparable units and local currency increased by 4 per cent. Online sales increased by 9 per cent to 971 MSEK (894).

Operating margin

The company is targeting a reported operating margin* of 7-9% per year, i.e. incl IFRS16.

In 2021/22 the operating margin was 8.2 per cent (7.3). IFRS 16 had a positive effect on operating margin of 0.9 (0.9) of a percentage point.

Dividend policy

Dividends are to comprise at least 50% of earnings per share after tax, with consideration for the company’s financial position.

The Board of Directors proposes that a dividend of 6.75 SEK per share be distributed for the 2021/22 financial year, comprised of two separate payments of 3.375 SEK. Due to the company’s strong financial position and considering that no dividend was paid for financial year 2019/2020, the Board of Directors proposes that an extra dividend of 6.25 SEK per share be distributed as two separate payments of 3.125 SEK. It is proposed that payment be made in September and January.

Net debt/EBITDA

Net debt in relation to EBITDA is to be below two times. Investments are to be made in line with the company’s financial position, cash flow and credit facility.

In 2021/22 , net debt in relation to EBITDA excluding the effect of IFRS 16 was -0.5 times (-0.7). Net debt in relation to EBITDA including IFRS 16 amounted to 0.9 times (1.1)

*updated June 2022

Valikko Kieli