The Board of Directors of Ellos Holding has made a decision regarding a new direction for the business. The decision involves a focus on creating profitability and long-term value. The company assesses that its e-commerce platform, its focus on specific customer segments, and its established brands provide the conditions to increase sales and cash flow going forward.
The Group operates the websites Ellos, Jotex and Homeroom, which together with the payment service Elpy, will enable increased sales in the Nordic countries as well as in selected markets in Europe.
Ellos Group aims to achieve organic sales growth in line with the addressable market, with the ambition to outperform market growth over time, the company writes.
Regarding profitability, the company has set a goal for the adjusted operating margin to amount to over 8 percent in the medium term. The capital structure should be managed so that net debt in relation to the latest year's operating profit before depreciation, excluding effects from accounting rules regarding lease agreements, is less than 2.0x.
The company also intends to distribute excess liquidity to its shareholders, provided that investments for growth have been made and the goals for the capital structure are maintained.
Targets Women
Management emphasizes that the updated governance reflects how the business has developed recently.
Our new financial goals reflect the strong development Ellos Group has experienced in the past year and the opportunities we see ahead. With secured long-term financing, an established strategy focused on the woman in mid-life, a scalable online platform and leading e-commerce sites, we have good conditions to continue driving profitable growth both within and outside the Nordics and deliver value to our customers and shareholders, says Hans Ohlsson, CEO of Ellos Group.
Revenue and Operating Profit
The business has its headquarters in Borås and primarily targets women in mid-life with products in home furnishings and fashion. The e-commerce group employs approximately 500 people.
The annual turnover amounts to approximately SEK 3.5 billion. As the Group is now setting new future goals, no historical operating profit in krona is reported in this update, but the future goal for operating profit, measured as an adjusted operating margin, is set at over 8 percent.