Financial Goals & Strategies
The Board of Directors and Executive Management have reviewed the company’s positioning, heading and goals in upcoming years. The result of this is briefly presented below.
Stability and profitability constitute the basic foundations of Stille. Stille’s long-term group-wide financial goals consist of:
- EBITDA margin should be at least 20% across a business cycle.
- Gross Profit margin should exceed 50% over time.
- Net Debt/EBITDA should not exceed 3 over time.
Our growth targets consist of:
- The organic growth should at least amount to 10% per year.
- Complementary acquisitions.
With this we aim to achieve a stable and long-term return to shareholders.
We are working for growth partly through organic growth, partly through acquisitions that complement our existing product portfolio and market presence. This applies to both our business areas.
Among other things, the action plan includes:
- Continued investments in product development.
- Acquisitions of complementary operations and products.
- Strengthened presence and organization in the USA.
- Strengthened sales organization.
- Identifying and developing additional distribution channels for our business area: surgical instrument products.
- Market expansion together with our business area distributors of operating tables
Today, Stille is a strong brand name that is very well known and with a good reputation among surgeons all over the world. We must use and administer our brand name for continuing profitable growth.
Stille’s policy is that the dividend is based on the group’s earnings trend and possibilities and its financial standing. The long-term goal is that the dividend must have a stable development and amount to 30–40 percent of results after tax.
Stille must have a proportion of equity that exceeds 40% of the balance sheet total. Bank financing may be needed for acquisitions or major investments. Shares can be issued in conjunction with large acquisitions.