The VBG Group as an investment

There are many excellent reasons for investing in VBG Group. We have listed a few of them below.

Strong brands in several different niches

Over time, VBG Group has built up, and acquired, very strong brands. To a great extent, these have enabled the Group’s four divisions to take positions as world leaders in their respective industrial niches. Our focus on operating in several different niches enables the Group to have a diversified customer base, which in turn yields a healthy risk spread.

Secure, stable ownership situation

VBG Group acquires, governs and pushes the development of the Group forward from a long-term and sustainable perspective. This is possible owing to a solid base of stable long-term owners. These comprise both the three owner foundations started by the founder of VBG Group — which are now the Group’s principal owners — and a number of major institutional owners.

Long-term financial strength

The VBG Group’s ownership model has provided a high degree of financial stability over the years with a high equity/assets ratio and healthy finances. A balance between providing the owners with a stable yield and allowing the earnings to remain in the Group and work, in combination with strong operations, has created a stable financial foundation for continued development of operations as well as expansion through acquisitions.

Successful growth

VBG Group is growing, both organically and through acquisitions. The objective is average annual sales growth of at least 10% over a five-year period. In 2021, sales increased by 14.7%. Increased demand for transportation and infrastructure had a positive impact. Total compound annual growth rate (CAGR) over five years totaled 18.5%, divided between organic growth (CAGR) of 8.3% and structural growth (CAGR) of 13.1%. The add-on acquisition of Insta-Chain, which contributed to organic growth, was completed in 2021

Stable dividend yield

Under VBG Group’s dividend policy, we will normally distribute 30% of the Group’s net earnings. Since the company’s initial listing on the stock exchange in 1987, and including the dividend of SEK 5.00 (4.50) proposed by the Board to the 2022 Annual General Meeting, the company has paid an average dividend amounting to 32.4% of the net profit. However, the canceled dividend for 2019 (as a result of the pandemic) had a negative impact. Disregarding 2019, the company has disbursed an average of 36.6% of net profits. If 2019 is excluded, the latest ten-year average is 40.2%.