Mid-term financial targets and cash allocation policy
We aim to deliver ambitious mid-term profit targets:
- Mid-single digit % organic sales growth
- An above 20% adjusted EBITDA margin
- High-single digit % adjusted EBITDA growth
The key drivers to deliver sustained organic sales growth are our innovation platforms, commercial synergies from recent acquisitions which come on top of our underlying market growth, and the continued expansion of our customer-centric solution offerings.
Our cash allocation policy has a clear order of priority for cash deployment:
- Disciplined capital expenditure for organic growth: approximately 6.5% of annual sales
- A stable, preferably rising dividend
- Disciplined M&A
- In the absence of value-creating M&A, capital to be returned to shareholders
We remain committed to maintaining a strong, investment-grade credit rating. With our dividend policy of a stable, preferably rising dividend, we target an average payout of 40–50% of adjusted earnings.