There are many excellent reasons for investing in VBG Group. We have listed a few of them below.
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.
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.
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.
The VBG Group’s business concept is built on both organic and structural growth. The objective is average annual sales growth of at least 10.0% over a five-year period. Sales increased 26.8% in 2022 (13.4% organic growth) as a result of increased demand for transportation and infrastructure. Total average growth over a five year period was 8.8%, of which 8.4% was organic growth and 0.4% structural growth. VBG Group’s objective is an operating margin (EBITA margin) greater than 15%. In 2022, the Group achieved an EBITA margin of 12.2%.
According to its dividend policy, in normal circumstances the VBG Group will distribute 30.0% of the Group’s net earnings. Over the last five years, an average 32.4% of net profit has been distributed. It should be noted that no dividend was distributed from earnings in 2019 as a consequence of the uncertainty around the ongoing pandemic, which negatively impacted the average proportion of the dividend. If 2019 is excluded from the calculation of the proportion of the dividend, this totals 40.5% of net profit. The proposed dividend yield for 2022 totals 3.9% (2.7) and over the five-year period averaged 2.6% per year including the proposed dividend on the earnings for 2022. The dividend yield for the last five years was impacted by the withdrawal of the dividend proposal for 2019 owing to the pandemic. The total return for 2022 was –22.9% (24.6). Over the past five-year period, the aggregate total return was 19.1%.
