Outlook and Targets
Our strategic business plan aims at strengthening the desirability of our brands. Our strict focus on executing against our strategic priorities will enable us to grow faster than our industry. At the same time we will grow our profitability significantly faster than sales. In addition, our very healthy financial position and the expected strong cash-flow generation will ensure we maintain our attractive dividend policy. Our overarching goal remains to create long-term value for our shareholders.
Outlook 2019
| Results 2018 | Outlook 2019 | |
|---|---|---|
| Group sales (currency-adjusted) | Increase of 4% | Increase at a mid-single-digit percentage rate |
| Gross profit margin | Decrease by 90 basis points to 65.2% | Increase of up to 50 basis points |
Operating result (EBIT) | Increase of 2% to EUR 347 million | Increase at a high single-digit percentage rate |
Group's net income | Increase by 2% to EUR 236 million | Increase at a high single-digit percentage rate |
| Capital expenditure | EUR 155 million | EUR 170 million to EUR 190 million |
Free cash flow | EUR 170 million | EUR 210 million to EUR 260 million |
Targets 2022
| Target 2022 | |
|---|---|
| Group sales (currency-adjusted) | Increase by an average of between 5% and 7% per year |
| EBIT margin | Increase to 15% |
| Free cash flow | EUR 250 million to EUR 350 million per year |
