Sinch Sets Ambitious New Financial and Sustainability Goals

Sinch Unveils New Financial and Sustainability Targets

Sinch AB (publ), a leader in customer communications through its innovative Customer Communications Cloud, is excited to share that its Board of Directors has established new financial and sustainability objectives for the future. With a keen focus on growth and responsible operations, Sinch aims to set a benchmark in the tech industry.

Mid-Term Financial Goals

Sinch has set ambitious targets to achieve by the end of 2027. Aiming for organic growth in net sales and gross profit, the company plans to achieve a year-on-year increase of 7-9%. Moreover, they have set an adjusted EBITDA margin goal of 12-14%. These benchmarks replace earlier targets which sought a growth rate of 20% for Adjusted EBITDA per share annually.

Emphasizing Sustainable Practices

Alongside their financial aspirations, Sinch is equally committed to sustainability. The company has pledged to reach Net Zero emissions by 2050, aligning this goal with the Science Based Targets initiative (SBTi). This crucial objective reflects Sinch's intent to contribute to the global effort in combating climate change, specifically aligning with the 1.5°C aim of the Paris Agreement.

Capital Allocation Strategy

Sinch is currently enjoying a phase of profitability and cash generation. The company's strategy involves wisely allocating excess cash to several critical areas: reducing debt, financing potential acquisitions, and returning value to shareholders. This approach is not just about immediate returns, but building a sustainable financial future.

Long-Term Financial Leverage Policy

As part of maintaining financial health, Sinch has established a clear financial leverage policy. The target is to keep net debt below 2.5 times the adjusted EBITDA, measured on a rolling twelve-month basis. Sinch acknowledges that post-acquisition periods might see leverage temporarily surpass this ratio. However, this proactive policy demonstrates the company's commitment to maintaining a robust and strong financial position designed for sustained long-term success.

About Sinch and Its Vision

Since its establishment in 2008, Sinch has grown rapidly, becoming a vital player in the communications sector. With over 175,000 businesses turning to Sinch's Customer Communications Cloud, including notable tech giants, the company enhances customer experience through mobile messaging, voice, and email solutions. Sinch continues to thrive, fueled by a passion for innovation and customer satisfaction, creating a positive impact in the world of digital communications.

Contact Information

For more information, individuals can reach out directly to Ola Elmeland, the Investor Relations Director, available via mobile communication at +46 721 43 34 59. Sinch's dedication to transparency and stakeholder engagement underscores its values.

Frequently Asked Questions

What are Sinch's new financial targets?

Sinch aims for a 7-9% annual organic growth in net sales and gross profit, along with an adjusted EBITDA margin of 12-14% by 2027.

How does Sinch plan to achieve sustainability?

Sinch is committed to achieving Net Zero emissions by 2050, aligning its efforts with the Science Based Targets initiative.

What is Sinch's capital allocation strategy?

Excess cash will be utilized to reduce debt, fund acquisitions, and return money to shareholders, reflecting a balanced and strategic approach.

What is the financial leverage policy of Sinch?

Sinch's policy requires keeping net debt below 2.5 times adjusted EBITDA, with allowances for temporary increases after acquisitions.

Where is Sinch headquartered?

Sinch is headquartered in Stockholm, Sweden, where it continues to drive innovation in customer communications globally.

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