May 3, 2018 / 9:18 AM / 19 days ago

BRIEF-Clas Ohlson ups sales target, lowers margin target, enters home service market

May 3 (Reuters) - Clas Ohlson AB:

* CLAS OHLSON TAKES PROBLEM SOLVING IN THE HOME TO A NEW LEVEL - LAUNCHES GROWTH STRATEGY WITH DIGITAL FOCUS AND NEW SERVICE OFFERING

* SAYS

* SAYS - LAUNCHES GROWTH STRATEGY WITH DIGITAL FOCUS AND NEW SERVICE OFFERING

* SAYS WILL GROW ON NORDIC MARKET

* SAYS A DEVELOPED ONLINE BUSINESS MODEL, WORLD-CLASS SERVICE AND SIMPLIFIED, STREAMLINED OPERATIONS ARE CRITICAL PARTS OF NEW STRATEGY

* NEW FINANCIAL TARGETS., SALES WILL INCREASE ORGANICALLY AN AVERAGE OF 5 PER CENT ANNUALLY OVER A FIVE-YEAR PERIOD

* SAYS FINANCIAL TARGETS ARE BEING REVISED

* SAYS SALES WILL INCREASE ORGANICALLY AN AVERAGE OF 5 PER CENT ANNUALLY OVER A FIVE-YEAR PERIOD

* SAYS OPERATING MARGIN WILL AMOUNT TO 6-8 PER CENT WITHIN A FIVE-YEAR PERIOD

* SAYS OVER FIRST TWO YEARS, WE EXPECT TO INVEST APPROXIMATELY 1-2 PER CENT OF UNDERLYING OPERATING MARGIN IN STRATEGIC INITIATIVES

* SAYS NET DEBT IN RELATION TO EBITDA TO BE BELOW TWO (2) TIMES

* SAYS OVER FIRST TWO YEARS, AMBITION IS THAT DIVIDEND WILL BE MAINTAINED AT LEVEL FOR 2016/17 FINANCIAL YEAR, IN ABSOLUTE TERMS

* SAYS SEES GREAT OPPORTUNITIES TO SIMPLIFY AND STREAMLINE OUR OPERATIONS

* SAYS SEES GREAT POTENTIAL FOR DEVELOPING ONLINE OPERATIONS, WHICH CURRENTLY REPRESENT 3.5 PER CENT OF SALES WHICH IS BELOW MARKET AVERAGE

* SAYS HOME PRODUCTS MARKET IS ESTIMATED TO GENERATE APPROXIMATELY 90 BILLION SEK IN NORDIC REGION TODAY, AND IS EXPECTED TO CONTINUE GROWING OVER NEXT FEW YEARS

* SAYS WE WILL BE ADDING NEW RELATED SERVICES TO OUR OFFERING, WHICH MEANS WE ARE ENTERING MARKET FOR HOME SERVICES

* CLAS OHLSON PREVIOUSLY TARGETED ANNUAL SALES GROWTH OF AT LEAST 2 PER CENT IN LOCAL CURRENCY AND COMPARABLE UNITS, OPERATING MARGIN OF AT LEAST 10 PER CENT Source text for Eikon: Further company coverage: (Reporting By Anna Ringstrom)

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