VBG Group establishes new profitability target

The VBG Group AB (publ) Board of Directors has decided on a new profitability target for the Group. The new target is to reach an EBITA margin of at least 15 percent. Previously communicated target for growth and the dividend policy remain.

VBG Group’s Chairman of the Board Johnny Alvarsson comments:

“To increase the ambition regarding the Group's earnings development is in line with the updated strategy plan decided in 2021. The profitability target is also fully realistic based on the good profitability the Group has shown in recent years.”

VBG Group’s financial objectives consist of:

Profitability: The target for the Group is to reach an EBITA margin of at least 15 percent

Growth: The Group’s target is to achieve >10% in average annual sales growth over a five-year period, of which >5% attributable to actual organic growth and >5% to structural growth.

Dividend: The Group’s dividend policy says that VBG Group will normally distribute 30% of the net profit to the shareholders. The dividend shall reflect the Board's view of the expected market development and the Group's strategy for growth.

VBG Group will further during the current year decide on new updated non-financial sustainability targets.

This information is such that VBG Group AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the contact person below, for publication on the 25th of February 2022, at 8:00 AM CET.

Contact
Anders Birgersson, President and CEO
Telephone: +46 521-27 77 67
E-mail: anders.birgersson@vbggroup.com

VBG Group AB (publ), domiciled in Vänersborg, is the Parent company of an international engineering Group with wholly owned companies in Europe, North America, Brazil, South Africa Australia, India and China. The Group’s operations are divided into three divisions – Truck & Trailer Equipment, Mobile Climate Control and Ringfeder Power Transmission – with products that are marketed under strong, well-known brands. VBG Group AB’s Series B share was introduced on the stock exchange in 1987 and is listed today on the Nasdaq Stockholm Mid Cap list.