Long-term financial targets

Cloetta’s proximity to customers and consumers, our knowledge of local and regional market conditions combined with strong local brands, efficient production and innovation power are important competitive factors for continued growth.

On March 27, Cloetta announced its updated long-term financial targets along with the strategic priorities to drive profitable growth. Our updated long-term financial targets are:

Organic sales growth

Organic sales growth target increased to 3-4% per year (previously 1-2%).

EBIT margin

Long-term adjusted EBIT margin target remains unchanged at 14%, with the addition that Cloetta will reach at least 12% by 2027.

Net debt*

Net debt/EBITDA ratio target strengthened to be below 1.5x (previously to be around 2.5x).

* Net debt / EBITDA target may be temporarily exceeded in the event of acquisitions, provided there is a clear path to de-leveraging

Dividend policy

A dividend payout above 50 per cent of profit for the year (previously 40-60 per cent).

 

 

EBIT and margin, adjusted

Net sales

Net debt/EBITDA

Dividend policy

*Excluding impact of the impairment and provisions and other items affecting comparability relating to the greenfield facility

Seasonality

Cloetta’s sales and operating profit are subject to some seasonal variations.

Cloetta’s sales and operating profit are subject to some seasonal variations. Sales in the first and second quarters are affected by the Easter holiday, depending on in which quarter it occurs. In the fourth quarter, sales are usually higher than in the first three quarters of the year, which is mainly attributable to the sale of products in Sweden in connection with the holiday season