Long range profitability in a new era
Elanders’ overarching goal is to be a leader in global solutions within supply chain management in a connected and sustainable world.
Elanders has a particular focus on advanced logistic solutions with a large portion of value-added services. Together with them Elanders develops customers’ business, strengthens their competitiveness and makes their supply chain more sustainable. Managing the supply chain optimally reduces resource consumption in transportation, production and warehousing, which makes customers more cost-efficient and sustainable.
Elanders is a global and strategic partner to customers in their business-critical processes. Its goal is to be a leader in global end-to-end solutions in supply chain management and best at meeting customers’ demands on efficiency and deliveries while focusing on sustainability. Elanders helps customers with their business-critical processes, locally and globally, through integrated and customized solutions for managing all or parts of their supply chains. At the same time customers’ climate footprint is reduced by optimizing both material and product flows.
Long-term financial targets
To achieve its long-range financial targets and consistently deliver an increase in value and higher return to its shareholders year after year, Elanders continually develops its offer to customers. A sustainable business model and new and continually improved services in combination with innovative technology form a good platform for continued growth and development as well as greater value for shareholders.
At year-end 2019/20, Elanders established new long-range financial goals because the implementation of IFRS 16 affected how the previous goals were calculated. The new financial goals are as follows:
- Net debt / EBITDA ratio no higher than 2.5
- Average net sales growth should be 3-5 percent annually
- EBITA margin of at least 7 percent
The new goals should be able to reach within a few years.
Focus on four growth areas
Elanders strives to have a balanced mix of customers, those with a high growth potential but which are less affected by oscillations in business cycles. Elanders has identified four areas where there is clear underlying growth: online shopping, Life Cycle Management, outsourcing of logistic services and online print. Elanders intends to continue its growth in these four sectors.
From local to global customers and acquisitions
Elanders develops with its customers. Global business often evolves through building up solid relationships when local needs are met and optimized through good solutions that are then implemented globally for customers. As the Group expands its capacity to meet customers’ needs on new geographic markets expands, which deepens customer relations.
In addition to developing existing business, Elanders will continue to acquire new businesses that have the potential to increase sales, broaden its customer base, and complement its existing offer. An important criteria for acquisitions is that they provide access to new or further develop geographic markets or customer segments. Elanders’ acquisition strategy primarily prioritizes acquisitions in the four above-named growth areas. Acquisitions within these areas will help the Group to grow while improving profitability. The objective is that acquisitions always broaden or complement Elanders’ range and, if possible, provide further niche expertise such as in Life Cycle Management where the company can actively contribute to a better and more sustainable society.
Last updated 3/18/2022