Anora revises financial targets and strategy
Koskenkorva Vodka owner Anora Group has updated its strategy and mid-term financial targets to get the company back in growth.
The updated mid-term financial goals replace the previous long-term financial targets set in November 2022, which were set to run until 2030. The new mid-term period will run until the end of 2028.
Anora’s board of directors has decided on mid-term financial targets of 6%-7% growth of comparable EBITDA (€85 million/US$97.8m to €90m/US$103.5m by the end of 2028).
They also forecast organic net sales growth to exceed market growth, and the leverage ratio of net interest-bearing debt to be below 2.5x. This may be impacted at times by mergers and acquisitions.
Kirsi Puntila, CEO of Anora, said: “Our updated strategy takes us back to the fundamentals, improving profitability and putting Anora back on a growth path.
“We do it by cutting complexity, restoring margins and cash flow, and focusing on the growth of our core brands. At the same time, we are pursuing selective expansion into new channels and categories, supported by disciplined international growth.
“Sustainability and responsibility continue to guide our decisions. As a true multi-channel operator, we engage consumers across all sales channels throughout the Nordics and Baltics.
“Looking ahead, we believe in our core brands, while we recognise the need to expand our range of low- and no-alcoholic beverages, invest in innovations, and shift towards more sustainable packaging solutions.”
Updated strategy: fit, fix and focus
Anora has outlined that before it invests in growth, it will strengthen its operational and financial foundations.
The updated strategy covers three core areas and timeframes: fit (2025-2026), fix (2025-2027), and focus (from 2026 onwards).
During ‘fit’, the group will aim to make around €20 million (US$23m) in EBITDA savings through procurement, organisational streamlining and operational efficiency.
For ‘fit’, the company believes it can unlock another gross €20m in EBITDA potential by 2028 through structural initiatives to improve profitability and competitiveness. This will include supply chain and portfolio optimisation.
Lastly, ‘focus’ will see growth-oriented initiatives actioned to generate gross €10m (US$11.5m) EBITDA improvement via growth in core, selective new channels, and disciplined international expansion.
Anora Group has not edited its near-term and long-term sustainability goals. The firm said it remained committed to reaching its net-zero greenhouse gas emissions across the value chain by 2050.
