The Board of Directors of Profoto Holding AB (publ) has decided to update the company's financial targets. The new targets stipulate that organic sales growth shall exceed 5% per year, compared with the previous target of 10%, and that the EBIT margin shall amount to 20%, compared with the previous target of 25-30%.
The previous targets were established in connection with the company's IPO in 2021 and were based on the market conditions prevailing at the time, long-term forecasts, Profoto's market position, and historical financial performance. Since then, market dynamics have fundamentally changed. The transition to LED technology has accelerated, while competition in the market has intensified.
In light of these changes and an updated medium-term market assessment, the Board has decided to revise Profoto's financial targets in order to better reflect the current external environment and the company's strategic position.
Going forward, the main growth drivers are expected to be sales of launched and upcoming LED products to both existing and new customer segments, while sales within the current Xenon technology are expected to develop more cautiously. Overall, long-term sales growth is expected to exceed 5% per year.
Given implemented cost adjustments in combination with the expected incremental sales growth, the company is well positioned to achieve a solid level of profitability with an EBIT margin of 20%.
Updated financial targets
| Target | New target | Previous target |
| Organic growth | 5% | 10% |
| EBIT margin | 20% | 25-30% |
Dividend policy remains unchanged
Profoto aims to distribute at least 50 percent of net profit to its shareholders through cash dividends and/or share buybacks, while taking into account other factors such as financial position, cash flow, and growth opportunities.
Comment from the Chairman of the Board, Hans Eckerström
"The financial targets set in connection with the 2021 listing were based on market conditions that have since changed, both in terms of technological shifts and evolving customer patterns. The Board has therefore chosen to update the targets to better reflect the company's current market position, while seeing strong opportunities to create long-term shareholder value from today's levels through new products and customer segments."
Comment from CEO Anders Hedebark
"Our new financial targets reflect both the structural changes that have taken place in the market and the opportunities we see ahead. We are making substantial investments in LED technology and will be launching several new products over the coming years. At the same time, we are taking an important step into the cinema segment, where we see significant long-term potential. With an efficient cost base and a continued focus on profitable growth, we are well positioned to deliver value to our customers and shareholders in the years to come."
Contact
Linus Marmstedt
CFO
Phone
+46 768 08 03 01
E-mail
linus.marmstedt@profoto.com
About Profoto
Profoto was founded more than 50 years ago and has since then been a world leader in lighting equipment for professional photographers, driving innovation and awareness of how to create better images through light. We know that light is the indispensable source in all image creation - regardless of camera or situation. Creating great images is about mastering and shaping light. The end users are professional photographers and commercial customers, including major consumer brands and e-commerce companies. The company currently has sales in 51 countries worldwide. Net sales in 2024 totaled SEK 731m, with an EBIT margin of 23 percent. Profoto has ~120 employees at its headquarters in Stockholm and in subsidiaries in the USA, Japan, China, Germany, and the Netherlands.
For more information about Profoto, please visit https://investors.profoto.com
This information is information that Profoto Holding is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-11 07:50 CET.
