STOCKHOLM, Nov. 20, 2024 /PRNewswire/ –Sinch AB (publ), which is pioneering the way the world communicates through its Customer Communications Cloud, today announces that the Board of Directors has set new financial and sustainability targets for the company.
Mid-term financial targets
By the end of 2027, Sinch targets to reach:
- Organic growth in net sales and gross profit of 7-9% year-on-year.
- Adjusted EBITDA margin of 12-14%.
These targets replace the earlier target that “Growth in Adjusted EBITDA per share shall be at least 20 percent per year.”
Sustainability target
Additionally, Sinch has set a Net Zero emissions target for 2050, which is in line with the Science Based Targets initiative (SBTi). The company aims to achieve short- and long-term emission reductions in line with the 1.5°C goal of the Paris agreement.
Capital allocation
Sinch is a profitable and cash-generative business. Excess cash generated by the company will be allocated to reduce debt, finance future acquisitions, and return cash to shareholders.
Financial leverage policy
As previously communicated, Sinch’s financial leverage policy is that:
- Net debt over time shall be below 2.5 times adjusted EBITDA (measured on a rolling twelve-month basis).
The phrase ‘over time’ means that leverage may temporarily exceed 2.5 times adjusted EBITDA in the time period following an acquisition.
This leverage policy underlines Sinch’s commitment to maintaining a strong financial position and supports the long-term financing strategy of the company.
For further information, please contact
Ola Elmeland
Investor Relations Director
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com
About Sinch
Sinch is pioneering the way the world communicates. More than 175,000 businesses – including many of the world’s largest tech companies – rely on Sinch’s Customer Communications Cloud to improve customer experience through mobile messaging, voice and email. Sinch has been profitable and fast-growing since it was founded in 2008. It is headquartered in Stockholm, Sweden, with shares traded at NASDAQ Stockholm: XSTO:SINCH. Learn more at sinch.com.
This information is information that Sinch AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was released for publication by the contact person above on 20 November, 2024, at 10:00 CET.
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SOURCE Sinch AB