Generate increased shareholder value through profitable growth
Essity focuses on profitable growth in order to generate long-term value for our shareholders. The financial targets are to generate annual organic sales growth of above 3% and adjusted return on capital employed of above 15%.
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Profitable growth
Our portfolio strategy provides clear priorities of the different categories and geographies for profitable growth. Price increases, improved product mix, higher volumes and cost savings contribute to growth and improved profitability.
Returns and dividends
Shareholder value is achieved through a positive share price trend and dividends. In line with Essity’s dividend policy, we aim to provide long-term stable and rising dividends to our shareholders. When cash flow from current operations exceeds what the company can invest in profitable expansion over the long term, and under the condition that the capital structure target is met, the surplus shall be distributed to the shareholders. Read more about the Essity share.
Capital structure
Essity’s target is to have an effective capital structure at the same time that the long-term access to debt financing is ensured. Cash flow in relation to net debt is to take into account the target to maintain a solid investment grade rating.
1) Net sales excluding exchange rate effects, acquisitions and divestments. 2) Excluding items affecting comparability. 3) Board of Directors’ dividend proposal.