FINANCIAL TARGETS

Long-term financial targets

In 2023, AddLife reaffirmed its long-term financial targets. The underlying objective continues to be to double AddLife's profit (EBITA) over a five-year period through growth of 15 percent per year. Growth will be generated both organically and through acquisitions. Acquisitions are largely financed with own cash flow through high profitability (P/WC) of at least 45 percent.

Profit growth EBITA 15 percent
Profit growth (EBITA) for the long term shall be 15 percent per year. The decline in 2023 can largely be attributed to the absence of significant COVID-19-related sales that occurred in 2022 but were not repeated in 2023.

Dynamisk graf: Earnings growth EBITA

Profitability 45 percent
Profitability (P/WC), i.e. the ratio of operating profit (EBITA) to working capital, must exceed 45%.

Dynamisk graf: P/WC

Financial governance model
Based on the overarching long-term financial targets of the Group, and the situation, financial position and circumstances of each subsidiary, all subsidiaries have individual targets and financial focus areas for both profit growth and profitability (P/WC). About 25 percent of the subsidiaries focus mainly on the EBITA margin, while 50 percent focus on increased profit growth and 25 percent focus primarily on streamlining working capital. 

Dividend policy 30-50 percent
AddLife’s dividend policy is to pay a dividend equivalent to 30-50 percent of consolidated profit after tax. Consideration is taken to investment needs and other factors that the Board of Directors of the company considers to be relevant. The group exhibits robust and reliable cash generation, supported by a business model resilient to economic fluctuations. The robust cash flow performance in the latter half of the year underpins our objective to reduce net debt through internally generated cash flow. Consequently, the Board proposes a dividend of SEK 0.50 per share for 2023, amounting to 30 percent of the group's profit after tax.

Dynamisk graf: Dividend