Investors will get a clearer picture of Sligro Food Group's strategy at the company's Capital Markets Day on March 5, where management plans to outline a new multi-year programme focused on structural margin improvement for the 2026-30 period. The move comes after the group struggled to restore operating profitability to pre-COVID levels despite a range of operational initiatives in both the Netherlands and Belgium.
For the year 2025, Sligro reported adjusted EBIT of c54 million, a figure 8% below consensus expectations. Management said sales growth was minimal and that rising operating costs offset cost-reduction measures, producing only a 30 basis point gain in operating margin despite numerous efficiency efforts.
On the cash side, Sligro delivered an exceptionally strong free cash flow performance in 2025, generating c80 million. That cash generation, combined with relatively low debt levels, enabled the board to approve an unanticipated share buyback of c26 million. The company also raised its dividend to c0.50 per share, an outcome that matched market expectations.
Management's outlook for 2026 is cautious. The company expects only limited top-line growth next year and anticipates a modest improvement in operating margin. Against that backdrop, the strategic plan set to be presented on March 5 will concentrate on measures intended to structurally lift margins across the 2026-30 timeframe.
Market analysts have already signalled a guarded stance on the stock. Kepler Cheuvreux retains a Hold rating on Sligro shares and assigns a target price of c10.50. That target implies a downside of 10.4% from the then-current share price of c11.72.
The company faces the dual task of accelerating margin recovery while maintaining the cash returns that underpinned the recent buyback and dividend increase. Management has chosen to prioritise a plan covering a multi-year horizon rather than promising rapid near-term margin rebounds.
Investors will likely focus on the details the group provides on March 5 - specifically which structural levers Sligro intends to deploy across its Dutch and Belgian operations, and how those initiatives will translate into measurable margin progress over 2026-30.