Financial goals

Cloetta’s proximity to customers and consumers, and knowledge of local and regional market conditions – combined with strong local brands, efficient production and innovativeness – represent key competitive factors for continued growth.

 

Organic sales growth

Cloetta’s long-term target is to increase organic sales at least in line with market growth.

Comments on the outcome 2016

Historically, total annual growth in the markets where Cloetta is active has been around 1–2 per cent. In 2016 Cloetta achieved sales growth of 3.1 per cent, of which organic growth accounted for 0.5 per cent.

EBIT margin

Cloetta’s target is an EBIT margin, adjusted, of at least 14 per cent.

Comments on the outcome 2016

Due to higher efficiency in the supply chain and good cost control during the year, the EBIT margin, adjusted, improved during the year to 13.0 per cent (12.2).

Net debt

Cloetta’s long-term target is a net debt/EBITDA ratio of around 2.5.

Comments on the outcome 2016

In 2016 Cloetta met its long-term target for net debt and reduced the net debt/EBITDA ratio from 3.03x to 2.44x. During the year, Cloetta also entered into a new term and revolving facilities agreement to refinance the existing bank loans and to redeem the senior secured notes.

Dividend policy

Cloetta’s long-term intention is a dividend payout of 40–60 per cent of profit after tax.

Comments on the outcome 2016

The net debt/EDITDA ratio has decreased markedly in the past few years and in 2016 Cloetta met its long-term target of a net debt/ EBITDA ratio of around 2.5x. In view of this, the Board proposes a dividend of SEK 0.75 per share for 2016, which corresponds to 53 per cent of profit after tax excluding the impact of impairment losses. The ambition is to use future cash flows for payment of dividends and to provide financial flexibility for complementary acquisitions. In 2016, SEK 144m was distributed to the shareholders.

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