Mekonomen Group affirms focus on growth, adjusts its long-term financial goals

Mekonomen Group adjusts its long-term financial goals and clarifies its dividend policy. The purpose is to enable value-creating future growth. The company considers the end of 2025 as the time frame to achieve the targets.

Mekonomen Group's adjustment of the long-term financial targets is made in order to reflect the company's current operating structure and enable higher growth rate in the future. During a capital market day on February 25, 2021, Mekonomen Group will present the strategy for achieving the long-term financial goals until 2025.

Financial goals:

• Average annual sales increase of at least 5 percent, through a combination of organic growth and smaller acquisitions. (Previously annual sales increase of at least 5 percent)
• To reach adjusted EBIT margin of 10 percent. (Previously EBIT of at least 10 percent)
• Net debt / EBITDA in the range 2.0–3.0 times. (Previously a maximum of 2.0 long-term)
• Mekonomen Group intends to pay dividends corresponding to not less than 50 percent of profit after tax to the shareholders. (Unchanged goal, clarified definition behind the proposed dividend)
  • Consideration should be taken to the company's potential acquisition opportunities, financial position, investment needs and future prospects.

The goals assume no major acquisitions.  

“We have a strong position in our markets, largely due to successful acquisitions historically where we have created great value. The adjustment of the long-term financial goals takes place as part of creating shareholder value. We are continuing according to plan with our successful structural work to increase profitability in our existing business areas, as well as our focus on reducing debt. I look forward to talking in more detail about our strategy for achieving the financial goals and our view on the development of the mobility industry in the coming years”, says Pehr Oscarson, President and CEO of Mekonomen Group.

“Mekonomen Group has had a successful growth journey over the past decade and is well positioned to continue participating in the consolidation of the European market. The adjusted long-term financial targets better clarify the company's growth strategy to further improve its profitability through economies of scale and synergies”, says John S. Quinn, Chairman of the Board of Mekonomen Group.

For further information, please contact

Pehr Oscarson, President and CEO Mekonomen Group
Telephone: +46 (0)8 464 00 00  
Email: pehr.oscarson@mekonomengroup.com

Åsa Källenius, CFO Mekonomen Group
Telephone: +46 (0)8-464 00 00
Email: asa.kallenius@mekonomengroup.com

Fredrik Sätterström, IRO Mekonomen Group
Telephone: +46 (0)70 510 10 22 
Email: fredrik.satterstrom@mekonomengroup.com