Financial targets

The Electrolux Group’s financial targets contribute to maintaining and strengthening the company’s leading, global position in the industry, and generate a healthy total return for Electrolux shareholders.

Organic sales growth – ≥4% over a business cycle

Electrolux Group aims at driving growth as an important enabler for reaching its operating margin target. The Group targets organic sales growth of at least 4% over a business cycle. In order to reach the growth target, the Group continues to strengthen its positions in core markets, new markets and core categories.

^{1) Change in net sales, adjusted for currency translation effects, acquisitions and divestments.}
^{2) Over a business cycle.}

Operating margin – ≥6% over a business cycle

Electrolux Group is focused on achieving sustainable profitability, with high priority on securing an operating margin of at least 6% over a business cycle. This will be achieved through innovative product launches and active product portfolio management, in combination with product- and structural cost efficiencies.

^{1) Operating income 2019, 2021, 2022 and 2023 included non-recurring items of SEK -1,344m, SEK -727m, SEK -1,046m and SEK -3,401m respectively. For more information, see “Operations by business area, yearly” in the Q4 2023 report.}
²⁾^{Over a business cycle}

Capital turnover – ≥4 times over a business cycle

Electrolux Group strives to achieve an optimal capital structure in relation to the Group’s goals for profitability and growth. The target for capital turnover is at least four times, over the business cycle, driven by ongoing efforts to reduce working capital and improve financial flexibility.

^{1) Over a business cycle.}

Return on net assets – >20% over a business cycle

Focusing on growth with sustained profitability and a small, efficient capital base enables Electrolux Group to achieve a high long-term return on capital. The Group targets a return on net assets above 20% over a business cycle, achieved through a robust operating margin and efficient use of capital.

^{1) Over a business cycle.}