AD Plastik proposed no dividend payment, which is to be approved on the General Assembly.

AD Plastik published an announcement on the ZSE stating that the Supervisory Board confirmed the draft decision regarding the dividend, which shall be submitted to the General Assembly for decision-making, to be held on 14 July.

The draft proposes no dividend payment from profit realized in 2021. This shouldn’t come as a surprise, as the company experienced difficult macroeconomic environment. Chronologically speaking, firstly EU sales dropped as the still-present semiconductor shortage dragged a whole industry. Secondly, but more importantly, AD Plastik felt a significant impact from the Russian invasion of Ukraine, as the company generated 27% of total revenues from Russia, on FY basis. All of the above resulted in Q1 2022 sales dropping 24% YoY, basically halving in EBITDA and a sharp 98% YoY decrease in net profit. No dividend payment proposal seems like nothing but an expected and rational decision from the company for saving cash and ensuring a stable financial position.

In the graphs below, we are bringing you a historical overview of the company’s dividend per share and dividend yield, even though we should emphasize that historical trend is not expected to continue, at least in a short(er) period.