HAKI Safety updates its financial targets
HAKI Safety updates its financial targets
HAKI Safety has reviewed its financial targets and, as a result, has updated and clarified them in some parts. The updated targets reflect the Group's ambition to focus on profitable growth. The absolute turnover target is therefore replaced by a growth target, and a new profitability target is introduced.
Sverker Lindberg, President and CEO of HAKI Safety, says: “The updated targets are based on past events, but above all on what we see and plan for the future. The previous absolute turnover target showed our ambition to grow, but since the market conditions due to geopolitical and macroeconomic events have not been optimal, the target has proven difficult to achieve. However, our ambition to grow remains. With a percentage growth target in combination with a profitability target, we can create sustainable value for our shareholders.”
Sverker Lindberg concludes: “Our strategy, which ultimately aims to create safe conditions for everyone who works in demanding environments, is solid and we are well positioned for the future when market conditions improve. Internally, we place great importance on creating good conditions for profitable growth by working with efficiency improvements and realising synergies from acquisitions.”
Tomas Hilmarsson, CFO of HAKI Safety, says: “In light of the external events of recent years, in combination with last year's introduction of a business area structure and no less than four acquisitions since 2024, the now updated financial targets suit us well. These are targets that should be considered both realistic and compatible with responsible risk-taking. Overall, the updated financial targets reflect our focus going forward both internally and externally.”
Updated financial targets
1. Growth target: Growth over a business cycle >10 percent
Annual sales growth over a business cycle should exceed 10 percent, driven primarily by organic growth and by bolt-on acquisitions.
The previous target was a turnover target of SEK 2,000 million by 2027.
2. Profitability target: Operating profitability of 10 percent in the short to medium term, >12 percent in the medium to long term
Operating profitability, measured as the adjusted EBITA margin, should be 10 percent in the short- to medium-term and exceed 12 percent in the medium- to long-term.
The previous target was an adjusted EBITA margin exceeding 10 percent.
Adjusted EBITA margin is considered to provide a fair picture of the underlying business's profitability, as it excludes amortisation and write-downs of acquisition-related intangible assets, as well as non-recurring items.
3. Debt/equity ratio target: Financial net debt in relation to adjusted EBITDA <2.5, which may be temporarily exceeded
Financial net debt in relation to adjusted EBITDA should be less than 2.5, but may be temporarily exceeded due to acquisitions, for example.
The target remains the same as before, except that it may be temporarily exceeded. Acquisitions will continue to be an important part of HAKI Safety's growth strategy and may result in the ratio being exceeded at the time of the transaction, but it will decrease over time as profit is generated from the acquired business(es).
The financial net debt refers to interest-bearing liabilities with deductions for cash and adjusted EBITDA as operating profit excluding depreciation, amortisation and write-downs and non-recurring items. The measures are measured excluding the effects of IFRS 16.
The dividend policy, which is to pay a dividend of 25–50 percent of the year's net profit, will remain unchanged.