Financial targets
Description: Good sales development and a strong market position are key factors in achieving and maintaining good profitability and value growth.
Outcome: Development in 2020 for all of the Group’s grocery retail segments has been significantly impacted since March by the ongoing Covid-19 pandemic, with ICA Sweden seeing favourable volume growth while Rimi Baltic and Apotek Hjärtat developed in the opposite direction.
Description: The target level provides room for investments in the business and a return on invested capital, and is at a good level for the industry. The target is measured excluding items affecting comparability.
Outcome: The improved operating profit for ICA Sweden and ICA Real Estate combined enabled the Group to reach its margin target of 4.5% in 2020. This was possible despite the lower operating profit reported for other operations after the negative impact of the Covid-19 pandemic.
1 In addition to the formal IFRS reports, in Recalculated 2018 amounts are presented as if IFRS 16 had been applied from 1 January 2018.
Description: The target level indicates that the Group is using capital effectively. The target was changed at the beginning of 2019 due to accounting changes under IFRS 16. ICA Bank is not included in the calculation because banking legislation stipulates that its assets and liabilities are not available to the Group. Instead ICA Bank has a target for return on equity that is a more appropriate target for banking operations.
Outcome: Although the average capital employed increased in 2020, the target was reached thanks to an improved result. The outcome was 9.2% (7.9).
1 In addition to the formal IFRS reports, in Recalculated 2018 amounts are presented as if IFRS 16 had been applied from 1 January 2018.
Description: The intention is to provide shareholders with a good dividend while also being able to make value-adding operational investments.
Outcome: The Board of Directors proposes that the dividend is increased by SEK 1.00 to SEK 13.00 per share. If the Annual General Meeting votes in favour of the Board’s proposal the dividend will therefore increase by 8.3% and the dividend will amount to 63% of profit for the year.
1 In addition to the formal IFRS reports, in Recalculated 2018 amounts are presented as if IFRS 16 had been applied from 1 January 2018.
Description: A good balance between earnings and borrowing gives the company the freedom and ability to act, even in times of recession.
Outcome: The Group’s net debt fell slightly during the year due to lower lease liabilities. The underlying net debt, excluding the effects of IFRS 16, increased slightly, primarily due to a significantly higher level of investment in 2020 than the previous year. Net debt was around 1.8 times EBITDA at the end of the year, which is well in line with the Group’s target ratio of below 3 times.
1 In addition to the formal IFRS reports, in Recalculated 2018 amounts are presented as if IFRS 16 had been applied from 1 January 2018.
