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 2019, sales increased 6.7%, of which 100% was organic growth. Total average growth over a five-year period was 25.7%, of which 13.3% was organic growth and 17.8% structural growth. Strong growth is to yield greater operating profit and an increased profit per share, which was also the case for VBG Group in 2019, since operating profit increased with 4.2% since 2018.

Stable dividend yield

Under VBG Group’s dividend policy, we will normally distribute 30% of the Group’s net earnings. Over the last ten years, we have distributed on average 39.2% of net earnings, and the average dividend yield has been 2.20% per year. The total return for 2018 was –1.48% after a weak conclusion to the stock exchange year. Over the past ten-year period, the total return was 312.5%.

Total returns

The VBG Group’s overall objective is sustainable and profitable growth, which should also lead to a good long-term financial return for the shareholders.