Investors

Strategy and financial targets

Duell is aiming for significant revenue growth. Acquisitions, promoting online sales and new brands are key priorities in the growth strategy.

Key strategic objectives

• To become the best partner for dealers and brand owners throughout Europe

• To strengthen its leading market position in the Nordics.

Strategic priorities

Organic and M&A expansion to new geographic markets

• Increasing market share by attracting new customers and increasing the share of total customer purchases.

• Expansion into new markets and product categories. adding existing group brands and product categories to its country specific product offerings.

• M&A transactions. Duell has identified at least 30 potential targets.

• In larger M&A transactions, Duell may also consider a mix of debt and equity financing to incentivize sellers.

Partner for building online sales

• Duell is able to provide its partners fast and accurate order processing, one stop shop approach in product sourcing, broad product inventory and dynamic and flexible deliveries.

• Duell also provides business to business online stores and system integrations that enable cross-docking, dropshipping, automated processes and orders as well as checking stock availability in real time. Furthermore, Duell is continuously improving its Product Information Management platform to increase overall transparency and seamless coverage of product information.

• Duell also aims to effectively support traditional offline customers in making the shift towards the online dealer space in addition to supporting traditional offline dealers.

Brand Portfolio Development

• Including more brands in its product portfolio.

• To attract best brand suppliers by offering a strong value proposition.

• In addition to best brands, Duell distributes top and transitional brands that have the potential to be converted into own brands when certain volume requirements are met and Duell finds a suitable supplier, and that generally have higher margins than third party brands.

• Duell will consider acquiring own brands

Financial targets

Medium term targets (3-5 years)

• Growth: net sales in the range of EUR 200–300 million by the end of 2025, achieved through a combination of clearly above 10 percent annual organic growth and acquisitions.

• Profitability: adjusted EBITA margin of at least 13 percent.

• Leverage: net debt to adjusted EBITDA ratio in the range of 2–3. Leverage may temporarily exceed the target range (for example, in conjunction with acquisitions).

Short term targets

Growth: revenue growth of least 15 percent for the financial year ending August 31, 2022, excluding the impact of potential M&A transactions.