Global strategic partner
Elanders’ overarching goal is to be a leader in global solutions within supply chain management with a particular focus on advanced logistic solutions. Together with our customers Elanders develops their business and strengthens their competitive power. Operations are primarily run in two business areas, Supply Chain Solutions and Print & Packaging Solutions.
Elanders is a global and strategic partner to our customers in their business critical processes. Through integrated and customized solutions for managing all or parts of customers’ supply chains Elanders helps customers optimize their business critical processes, both locally and globally. Our goal is to be a leader in global total solutions in supply chain management and best at meeting customers’ demands on efficiency and delivery, with focus on sustainability. The strategy is to operate within niches in each market area where the Group can take a market-leading position. In order to achieve our long-range financial goals and sustainably deliver an increase in value and higher return to our shareholders year after year, Elanders continually develops its offer to customers. New and improved services, integrated total solutions and the implementation of innovative technology creates a good platform for continued growth and development as well as greater value for shareholders.
Develop local customers into global customers
Elanders expands and develops with our customers. Our global business often evolves through building up solid relationships when local needs are met and optimized through good solutions that are then implemented globally with our customers. In order to increase the sales of these solutions, Elanders works systematically on developing our existing customer base in each segment and spotting local customers with global needs. In some cases, customers may also have local needs in other countries that Elanders can cater to, and in this way cooperation with customers can be extended and the relationship deepened.
Elanders has operations in many parts of the world. It is an important success factor in being able to meet our customers’ needs in the best possible way. Capacity utilization in the Group’s various units is optimized by regularly measuring available capacity in the Group. In order to ensure that an optimal allocation of business and production is made actual outcomes is continuously followed up and, if necessary, organizational adjustments are made.
Acquisitions that lead to expansion
In addition to developing the existing business Elanders will continue to acquire new businesses that have the potential to increase sales, broaden the customer base and complement the integrated offer. Acquisitions are particularly prioritized in business area Supply Chain Solutions to broaden or supplement the range and, if possible, provide Elanders with further niche expertise in, among others, Life Cycle Services where Elanders can contribute to a better and more sustainable society. Acquisitions that provide access to new geographic markets or customer segments are also interesting.
Any acquisitions should meet one or more of the following criteria:
- Adds new customer segments and/or supplements the customer base with valuable, unique customers.
- Complements and strengthens existing business and/or accesses new geographic markets.
- Adds new products and/or services.
- Is a good deal in the long-term on its own or generates material synergies.
- Increases profit per share pro forma.
At year-end 2019/20 Elanders established new long-range financial goals because the implementation of IFRS 16 affected the calculation of the previous goals. The new goals are as follows:
- Average net sales growth should be 3-5 percent annually
- EBITA margin of at least 7 percent
- Net debt / EBITDA ratio no higher than 2.5
The new goals should be able to reach within a few years.
Last updated 3/9/2020