Outlook and strategy

Targets and results

Developing our business in line with Coor’s vision requires a long-term approach to sustainability. Coor creates value in three dimensions – business responsibility, social responsibility and environmental responsibility – and regularly reports its results in relation to the company’s long-term targets.
Ikon – hand som håller i en pil

business responsibility

Organic growth
Måldiagram – Organisk tillväxt
Target 5%
Annual organic growth of 4–5 per cent over the course of a business cycle.

Result 2%
In 2023, Coor grew organically by 2 per cent, which is below the company’s target over a business cycle. Organic growth was boosted by the large IFM contract with the Danish Building and Property Agency, a large number of new medium-sized contracts and high variable volumes in property services and food and beverages. The ended contracts with Volvo Group and Ericsson had a negative impact.
Adjusted EBITA margin
Måldiagram – Justerad EBITA-marginal
Target ~5.5%
An adjusted EBITA margin of around 5.5 per cent in the medium term.

Result 4.9 %
In 2023, Coor had an adjusted EBITA margin of 4.9 per cent. The margin is slightly below Coor’s long-term target.

In the second half of 2023, Coor implemented an action programme to accelerate progress towards achieving the company’s long-term target margin. The programme includes increased cost control, streamlining of underlying processes and an increased focus on purchasing to take advantage of Nordic economies of scale.
Payout ratio
Måldiagram – Utdelning i procent
Target ~50%
The target is to distribute around 50 per cent of the company’s adjusted net profit for the period (before amortisation and impairment of intangible assets) in ordinary dividends to the shareholders.

Result 101%
In view of the company’s continued stable cash flow, the Board proposes a dividend for 2023 of SEK 3.00 per share (comprising an ordinary dividend of SEK 2.40 per share and an extraordinary dividend of SEK 0.60 per share). This equates to a high dividend yield of 7 per cent. The total dividend amounts to 101 per cent of the company’s adjusted net profit for the year. The proposed dividend is subject to approval at the 2024 AGM.
Capital structure
Måldiagram – Kapitalstruktur
Target <3.0X
Net debt of less than 3.0 times adjusted EBITDA in the medium term.

Result 2.5X
Coor reports a leverage of 2.5 times adjusted EBITDA, which is well in line with the company’s target. The increase during the year is attributable to the payment of dividends to shareholders of SEK 456 million and the acquisition of Skaraborgs Städ.
High customer satisfaction
Måldiagram – Hög kundnöjdhet
Target ≥70
The goal is to maintain a high level of customer satisfaction over time (Customer Satisfaction Index) ≥70.

Result 71
The result for the year – a score of 71 – indicates a level of customer satisfaction that is still well in line with the company’s targets.
Cash conversion
Måldiagram – Kassagenerering
Target >90%
A cash conversion rate in excess of 90 per cent in the medium term.

Result 86%
The outcome of 86 per cent for 2023 is slightly below Coor’s target. The lower outcome is partly attributable the fact that the year ended on a Sunday, which resulted in a slightly higher share of overdue accounts receivable. The company has seen no change in behaviour when it comes to payment patterns.
Ikon – hand som håller en grupp människor

Social responsibility

Committed and motivated employees
Måldiagram – Engagerade och motiverade medarbetare
Target ≥70
The target is to maintain a high level of employee motivation (Employee Motivation Index) ≥70.

Result 76
In the employee survey for the year, Coor maintained a high score – 76 – which is above the company’s target and in line with last year.
No injuries or long-term sick leave
Måldiagram – Inga skador och långtidssjukskrivningar
Target ≤3.5
The target is to reduce the company’s TRIF (total recorded injury frequency) rate to ≤3.5 by 2025.

Result 5.5
The number of injuries has continued its steady decline. For 2023, the TRIF rate was down by a further 1.5 points, indicating that our efforts have continued to yield results.
Equal opportunities
Måldiagram – Lika möjligheter
Target 50%/50%
The target is a 50/50 gender balance at management level.

Result 53%/47%
Across the company as a whole, the proportion of women in management positions is 53 per cent, which is in line with the company’s target.
Ikon – Hand som håller en planta

Environmental responsibility

Reduced emissions
tCO2e from vehicle fleet and premises (Scopes 1 and 2)
Måldiagram – tCO2e from vehicle fleet and premises (Scopes 1 and 2)
kgCO2e per kilogram of food purchased (Scope 3)
Måldiagram – kgCO2e per kilogram of food purchased (Scope 3)
Target –75% / 75% / –30%
Coor’s target is to reduce its absolute Scope 1 and 2 emissions by 75 per cent by 2030 compared with the base year, 2018. The interim target is to reduce emissions by 50 per cent by 2025.

Within Scope 3 Coor has a target for 75 per cent of emissions from purchased goods and services as well as upstream transport to come from suppliers who have had their targets approved by the Science Based Targets initiative (SBTi) or an equivalent body.

In food and beverages (scope 3), Coor has a target of reducing emissions by 30 per cent by 2025 compared with 2018, related to the volume of food purchased.

Result –3% / 18% / –19%
Overall, Coor’s Scope 1 and 2 emissions have decreased by 3 per cent in absolute terms since 2018. The slow reduction in emissions is mainly related to the availability of infrastructure for electrified vehicles coupled with long delivery times for new electric vehicles as well as the company’s rapid growth, which has resulted in a growing car fleet. In absolute terms, tCO2e from energy use have decreased by 58 per cent since 2018.

At the end of 2023, 18 per cent of Coor’s emissions came from suppliers with validated Science Based Targets initiative (SBTi) targets.

Furthermore, through measures such as climate-smart menu planning Coor has reduced emissions in food and beverages by 19 per cent compared with the baseline year 2018, and reports a value of 2.15 kg CO2e/kg food purchased for the year 2023.
Percentage of suppliers signed up to SBTi