Alimak Group presents new financial and sustainability targets
The Board of Directors of Alimak Group has decided to set new financial and sustainability targets, as the company is already meeting and exceeding the financial targets set out two years ago.
In October 2020 the New Heights programme was launched, and after successfully completing the first two steps – establishing the base and securing margin improvements – Alimak Group entered into 2022 with focus on the third phase: profitable growth.
The positive results in 2022 and the first quarter of 2023 show the strength in the strategic direction set out in the New Heights programme. The acquisition of Tractel, consolidated as of 21 November 2022, has also contributed to an even stronger, broader and more profitable and resilient industrial company.
"The new financial and sustainability targets that we announce today reflect the potential we see for accelerated profitable growth. It also reflects our ambition to contribute to workplace safety, our social responsibility, and our ambition to reduce climate impact. The strong operational improvement, together with the added value from the acquisition of Tractel, will lift the Group to a new level and increase shareholder value”, says Ole Kristian Jødahl, President and CEO of Alimak Group.
New financial targets:
- Revenue growth target: 6-10%
The Group's target is to have an average annual revenue growth of 6-10%.
Previous target: average annual revenue growth of 5-7%.
- Adjusted EBITA margin target: >18%, within 2-3 years’ time
The Group's target is to reach an adjusted operating EBITA margin exceeding 18%, within 2-3 years’ time.
Previous target: operating EBITA margin of 14-16%.
- Net Debt/EBITDA target: <2.5x
The company will maintain an effective capital structure with a net debt below 2.5x EBITDA over a cycle. The capital structure will be flexible and allow for strategic initiatives.
Previous target: the company will maintain an effective capital structure with a net debt of around 2.0x EBITDA over a cycle.
- The Group’s dividend policy of paying a dividend of 40-60% of the net profit to its shareholders remains unchanged.
New sustainability targets:
- 30% CO2 reduction to 2025 (Scope 1, 2, 3, normalized based on turn-over, reduction compared to 2019), and moving towards Science Based Targets
- >40 Employee NPS
- <2 LTIFR, Injury rate per million working hours
- >80% ESG assessment of direct material suppliers
Alimak Group's Capital Markets Day 2023
At the Capital Markets Day held today, 14 June, President and CEO Ole Kristian Jødahl, and other members of the Group Leadership Team, will present the company's strategy with the development of the New Heights programme and deep dives into the divisions.
All participants joining digitally will be able to ask written questions via the webcast.
The live webcast will be available on https://corporate.alimakgroup.com/en/investors/capital-market-day-2023/.
The presentation will start at 15.00 CEST and is expected to end at 18.00 CEST.
For more information, please contact:
Ole Kristian Jødahl, CEO, Alimak Group
Sylvain Grange, CFO, Alimak Group
Johnny Nylund, CCO, Alimak Group, +46 76 852 5759
About Alimak Group
Alimak Group is a global provider of sustainable vertical access and working at height solutions, listed on Nasdaq Stockholm. With presence in more than 120 countries, the Group develops, manufactures, sells and services vertical access and working at height solutions with focus on adding customer value through enhanced safety, higher productivity and improved cost efficiency. The Group has a large installed base of elevators, service lifts, temporary and permanent hoists and platforms and building maintenance units around the world. The solutions portfolio also comprises of height safety protective equipment, load measurement & control, lifting & handling, and a global after-sales business model, with recurring revenue from spare parts and services such as inspection, certification, maintenance, refurbishments, replacements and training. Founded in Sweden 1948, the Group has its headquarters in Stockholm, 24 production and assembly facilities in 15 countries and approximately 3,100 employees. corporate.alimakgroup.com