Inside information

Enento Group updates its strategy and long-term financial targets - Seite 4

Road to margin expansion

In addition to investing in scalable growth opportunities, the Company expects that other initiatives will contribute to achieving its target of around 40% adjusted EBITDA margin by the end of the strategy period. Focus will be on optimizing and remodeling sales resources and distribution channels, enabling leveraging solutions at a Nordic level while prioritizing customer-centricity. The Company has already taken steps to enhance IT efficiency, including the consolidation of local capabilities and moving into agile portfolio management with efficient resource allocation, and will gradually decommission legacy solutions and platforms. Furthermore, it has identified potential permanent cost efficiencies in areas such as offshoring, vendor consolidation, and infrastructure streamlining. This ongoing work throughout the strategy period is ultimately anticipated to lead to an improvement in profitability.

Long-term financial targets aiming at profitable growth

Enento's long-term financial targets represent its perspective on creating long-term value, guided by strategic choices. Despite the prevailing uncertain macroeconomic environment, the Company remains confident in its ability to achieve consistent and sustainable growth in terms of both net sales and profitability throughout the strategy period. While market growth, price adjustments, and expanded market penetration contribute to growth, it anticipates a significant portion of it stemming from new services. By fostering innovation and making targeted investments in growth areas, Enento aims to accelerate its growth trajectory and increase the proportion of net sales from new services by the end of the strategy period.

The financial targets for the strategy period are the following:                        

• An annual average net sales growth of 5-10% for the period 2024-2026
• Adjusted EBITDA margin around 40% in 2026
• Net debt to adjusted EBITDA ratio below 3x
• Share of new services from net sales around 10% in 2026

Additionally, the Company aims to be carbon neutral by the end of 2023 and have net zero emissions by the end of 2030.

Summary

Enento is confident in its ability to execute its updated strategy and achieve the stated long-term objectives. With a focus on growth through prioritized initiatives and margin expansion activities, it aims to retain a leading position in the credit information business while becoming the leading provider in business information services. Enento plans to develop innovative services that cater to evolving customer needs and drive growth in areas such as ESG, compliance, and master data. With a strong market position, untapped potential in new customer verticals, and a commitment to continuous development, Enento is poised to deliver steady, sustainable growth and improve profitability in the coming years.