Sales Growth
Annual sales growth over a business cycle should be >8 percent. The previous target was 5–8 percent.
Outcome 2023: 9%
Commentary on outcome in 2023
Demand for the Group’s products and solutions was favorable during the year. Net sales increased 14 percent compared to 2022 and amounted to sek 34,286 m (30,095). Organic sales increased 2 percent (14). Structural changes increased sales by 7 percent (3) and currency movements by 5 percent (10) compared with the preceding year. Total sales growth, organic as well as structural, averaged 7.9 percent over the past five years.
EBITA margin
The EBITA margin, excluding items affecting comparability, is to amount to >20 percent over an economic cycle 1. The previous target was an EBIT margin,excluding items affecting comparability, of >16 percent.
Outcome 2023: 17.5%
Commentary on outcome:
The EBITA margin was 17.5 percent (17.7). EBITA was the highest ever for a year, but the margin was negatively impacted by restructuring costs and a capital loss from a divestment in offshore oil & gas in the US. The EBITA margin averaged 16.7 percent over the past five years.
Return on capital employed
The return on capital employed (ROCE), excluding items affecting comparability, is to amount to >15 percent over an economic cycle. The previous target was >14 percent.
Outcome 2023: 12.9%
Commentary on outcome in 2022
The return on capital employed (ROCE), excluding items affecting comparability, was 12.9 percent (15.9). ROCE was negatively affected by acquisitions with initially lower returns. ROCE averaged 13.7 percent over the past five years.