The Tellus Group announces new financial targets focused on continued growth and strong profitability
Published: May 8, 2024
Since its initial public offering in 2021, Tellusgruppen AB (publ.) has grown significantly and expanded its operations into several new segments. The company is expected to reach revenue of over SEK 500 million in 2024. The Board of Directors has established new long-term financial targets. The company remains focused on stable and profitable growth, both organically and through acquisitions.
On May 7, the Board of Directors resolved that the Tellus Group’s long-term financial objective is to achieve, through both organic growth and acquisitions:
- 25 percent annual growth.
- An operating margin before depreciation and amortization (EBITDA margin) of at least 7 percent.
- Threshold ratio of net interest-bearing debt to adjusted EBITDA of 3.0.
The Tellus Group continues to grow, but as the Group expands, maintaining an absolute growth rate—in order to grow in a controlled and sustainable manner—will also result in a proportionally lower growth rate relative to revenue. For this reason, the Board of Directors has set a long-term annual growth target of 25 percent.
The profitability target remains unchanged. The Tellus Group will continue to combine a high growth rate with strong profitability, the latter defined as significantly higher than the industry average.
The Tellus Group’s various business areas have different capital adequacy requirements. EBITDA relative to net interest-bearing debt is a well-established metric used widely across various business areas and remains relevant throughout an “acquisition cycle” when acquiring new companies. For the Tellus Group, the Board has determined that an appropriate target for net interest-bearing debt/Adjusted EBITDA is 3.0.
– “The new long-term financial targets set by the Board are better suited to our business and our circumstances,” says CEO Bijan Fahimi.
