FINANCIAL TARGETS FOCUSED ON SUSTAINABLE GROWTH & PROFITABILITY
Based on the Group’s strategy, ITAB is today well positioned for the next step in the implementation of One ITAB. We intend to establish ITAB as the retail market’s leading solution provider in the coming years.
ITAB builds capabilities for more efficient and sustainable sales,purchasing and production with the ambition of increasing the proportion of services in its customer solutions. Over the past two years, ITAB has carried out a number of important activities in the transformation of the business,where the share of sales to the grocery sector has increased to approximately 60 percent and with an increased share of sales of Retail Technology and services, as well as improved profitability and strengthened financial position.
In order to take the next step in the development, the Board of Directors of ITAB Shop Concept established new financial targets, in conjunction with the preparation of the annual accounts in February 2022, that focus on sustainable growth and increased profitability.
Average growth in net sales (CAGR) of 4-8 percent per annum over a business cycle. Growth is to be achieved by sustainable organic growth and strategic acquisitions.
Average EBIT margin (operating profit in relation to net sales) of 7-9 percent over a business cycle.
Average cash conversion ratio (operational cash flow in relation to operating profit before depreciation and amortisation) of at least 80 percent over a business cycle.
Dividends over a longer period should follow the result and correspond to at least 30 percent of the company’s profit after tax. However, dividends will be adjusted to the company’s investment requirements and any share repurchase program.
Proportion of profit after tax