In the wake of the Q3 2023 report, ventilation company Lindab announced its ambitious goal to achieve a turnover of 20 billion by the year 2027. However, recent years have seen the company experience negative organic growth, with the 2024 turnover standing at 13.3 billion for the full year.
In an interview with Affärsvärlden, CEO Ola Ringdahl acknowledges that the target will not be met within the specified timeframe. Reflecting on the challenges, he states, “Back in early 2023, when we looked ahead and projected market growth for 2023, 2024, 2025, 2026, along with some acquisitions, the goal seemed ambitious but not impossible. Our activities were designed to reach that target. However, we have experienced negative organic growth in both 2023 and 2024.”
“It’s tough to achieve the ambition for 2027. We will get there, but we have lost at least a year. It will simply take a bit longer,” Ringdahl adds.
The postponement of the target by one to two years highlights the significant challenge ahead. To achieve the revenue goal, an average annual growth rate of 14.5% is required over the next three years. However, Affärsvärlden analyst Björn Rydell expresses skepticism about the feasibility of this target.
“The analyst consensus suggests that Lindab will not reach the goal, but rather achieve a turnover of 15 billion in 2027. The revenue target will not be met organically. Acquisitions may help, but even with them, it will be challenging. My best guess is that the revenue target will be postponed by one or two years,” Rydell comments.
In a strategic move, Lindab announced the departure of 180 full-time employees at the end of last year and initiated the divestment of the Profile Systems business area in Eastern Europe. These decisions reflect the company’s efforts to streamline operations and focus on key growth areas.
As Lindab navigates the complexities of achieving its ambitious revenue target, the road ahead is paved with challenges and uncertainties. The company’s ability to adapt, innovate, and capitalize on strategic opportunities will ultimately determine its success in the competitive market landscape. Stay tuned for updates on Lindab’s journey towards sustainable growth and profitability.