In connection with the ongoing update of Bravida's business plan, the company has also updated its financial targets.
As part of Bravida's ongoing strategy work, the Board has decided to update Bravida's target for growth, which is now adjusted to > 5%. The target regarding capital structure has also been adjusted, in accordance with IFRS 16.
Bravida's updated financial targets:
• EBITA margin: >7%, including dilution effects from acquisitions
• Sales growth: >5%
• Cash generation (IAS 17): >100 %
• Capital structure: <2.5x net debt / EBITDA
• Dividend policy: >50 percent of net income
The financial targets for cash generation, EBITA margin* and dividends remain unchanged.
The new target is based on assessed future market development
Bravida's new growth target is based on assessed future market development, as well as Bravida's estimated future growth through acquisitions. Mattias Johansson, CEO and Group President, explains:
“This year Bravida celebrates five years on the stock exchange. Since 2015, sales have grown from SEK 12 billion to SEK 20 billion – always with stable and good profitability. Meanwhile, the share price has more than doubled and shareholders have received a total return of 160 percent.”
“Bravida has a good foundation and we will continue to grow profitably, both organically and through acquisitions. But as we grow in size, it is natural that growth relative to total sales will be lower. This is why we are now adjusting our growth target”, says Mattias Johansson.
* EBITA margin refers to reported EBITA (Compared to adjusted EBITA, which was previously used. Bravida has not made any EBITA adjustments since 2017.)
For further information, please contact:
Mattias Johansson, CEO and Group President, Bravida. Phone: +46 8 695 20 00
Åsa Neving, CFO. Phone: Tel: +46 8 695 22 87
This information is information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at March 4, 2020 at 08:00 CET.