Strategy

Objectives

Making maximum use of the scope for internal synergy and exchange of information and know-how between the separate activities are important objectives of Sligro Food Group.

In addition, the Group has general objectives, strategic objectives, financial objectives and financing objectives.

General objectives

  • Increase Group like-for-like sales by an average of 3% per annum, with growth through acquisitions on top of this.
  • Grow Foodservice in the Netherlands to a market share of 30%.
  • Achieve a top-3 position for Foodservice in Belgium as a second home market.
  • Maximise the potential for internal synergy and exchange of know-how between Group activities.
  • Achieve competitive and permanent margin management in combination with cost control.
  • Provide high-quality service, always with a view to maximising customer loyalty.

Strategic objectives

  • Continually renew and improve our commercial concepts, formats and distribution channels with an omni-channel approach.
  • Optimise the network of Sligro; build up a solid structure for Sligro outlets in Belgium.
  • Optimise synergy behind the scenes while the commercial formats present distinct identities front of house.
  • Focus on the big picture to avoid unnecessary complexity.
  • Decisive and efficient operational management of retail and foodservice outlets.
  • Establish a more differentiated positioning for our regional customers by combining the professionalism that we can offer through our critical mass with the character of a local partner: 'Growth by staying small'.
  • Strengthen customer relationships through loyalty programmes, events, private labels and our range of fresh produce and unique products from our own production kitchens.
  • Further expand the package of physical and online services aimed at B2B customers in Foodservice in order to support them in their day-today commercial and operational endeavour.
  • Further increase our expertise, customer focus and entrepreneurial culture through ongoing employee training programmes.
  • Continually champion the typical Sligro Food Group 'Green Blood' culture in a growing organisation.
  • Make the best possible use of that distinctive element of the corporate culture of our company, namely our employees: their expertise, their passion and their unmatched commitment to our customers.
  • Capitalise on acquisition opportunities satisfying our criteria.

Financial objectives

  • Increase sales organically by 3% a year and take advantage of acquisition opportunities as they present themselves.
  • Ensure that the increase in net profit matches or exceeds sales growth.
  • Distribute about 60% of the year's profit as a regular dividend and pay a variable dividend on top of that, reflecting the financial position.

Financing objectives

  • Ensure that sufficient finance is available under long and short-term credit facilities, maintaining a wide margin with respect to the related financing covenants.
  • Shares may also be issued to provide financing but only if the target margins with respect to the financing covenants are insufficient as a result of major acquisitions.
  • Limit working capital to no more than 10 days' sales.