Byggmax Group’s Board of Directors has decided to update the group’s financial targets, to better reflect the company’s growth ambitions. Byggmax saw a sales increase of 29 per cent from 2019 to 2020. Yesterday, Byggmax Group held a Digital Capital Markets Day. The program covered Byggmax’s position and future ambitions, and also how Byggmax is impacted by some of the biggest trends of our time: discount, the home, and e-commerce.
“We have a strong position and are growing significantly faster than the market, with the fastest growth from e-commerce”, says Mattias Ankarberg, CEO of Byggmax Group. “The new sales target, to reach SEK 10 billion by 2025, clearly shows our ambitions to continue to grow fast. The other targets show our aim to do so with good profitability and dividend to shareholders, while maintaining a strong balance sheet and responsibility for the world around us.”
The updated financial targets are:
Net sales of at least SEK 10 billion 2025 (previous goal: organic growth of 10-15% per year)
Operating profit measured as EBITA of 7-8% (unchanged)
Net debt / EBITDA (excl. IFRS16, EBITDA rolling 12 months) max 2.5x (new target)
Dividend equivalent to at least 50% of net income (unchanged)
The building and home improvement trade ended up growing by 4.8 per cent in 2020, but the growth was not evenly distributed in the industry. There was a clear difference between consumer and professional customer trade. As larger projects went on ice, consumers themselves began to improve the home and yard.
The high levels of new construction, which has been taking place for several years, started to decline in 2020, which was reflected in the professional customer trade. “Consumers, on the other hand, found pleasure in do-it-yourself, which was also reflected in the sales development focused strongly on consumer sales,” says Minna Liuksiala, CEO of the construction and DIY retail association RASI ry.
“Almost all yard and garden products were sold in record terms. Outdoor decking and grills, as well as plants and garden products saw a huge increase in demand. Demand for larger garden investments, such as outdoor hot tubs, also exceeded all expectations” continued Minna Liuksiala.
In Finland the third quarter of the building and home improvement trade continued to develop positively, with growth reaching 2.5%. The cumulative growth for the first half of the year stands at 6%.
Data from the Finnish DIY Retail Association RASI ry has shown that the soaring growth rates of spring and summer have now leveled off, but growth is continuing.
Minna Liuksiala, CEO of RASI ry, said “The growth of consumer sales and, on the other hand, the slowdown in the growth of professional sales can be seen more and more clearly. The slowdown in new construction has been predicted for a year by a sharp decline in the number of building permits. On the consumer trade side, the largest increase in late summer and early autumn, still over ten percent, was achieved in yard and garden products as well as tools and supplies that consumers use for independent renovation.”