At the share price before the announcement, this would imply a DY of 4.15%. The ex-date is set for 26 June 2024, while the payment date is set for 28 June 2024.
Cinkarna Celje published the GSM call, which will be held on 19 June 2024. Inside the GSM call, the Company also published the proposal for the distribution of the balance sheet profit. Cinkarna notes that as of 31 December 2023, it amounted to EUR 38.4m, and consists of retained earnings of EUR 32m, and the 2023 net profit of EUR 6.3m.
Due to the restrictions on dividend payments related to government subsidies received in 2023 (more on which you can read here), the distribution will be made as follows: EUR 6.3m of 2023 net profit will be allocated to other profit reserves, representing a special account within profit reserves that cannot be paid out to shareholders. EUR 7m of the balance sheet profit, (from retained earnings before 2023), will be paid out in the form of dividends. This represents a payout ratio of 18% and excl. the 2023 net profit, a payout ratio of 22%.
On a per share basis, this would imply a gross dividend of EUR 0.9. At the share price before the announcement, this would also mean that the DY amounted to 4.15%. The ex-date is set for 26 June 2024, while the payment date is set for 28 June 2024.
As a reminder, due to the restrictions on the payment of dividends to shareholders from the 2022 net profit, the same restrictions related to government subsidy received in that year, Cinkarna Celje also paid out the dividend from that year’s profit this year, in the amount of EUR 3.2 DPS. Before the announcement, the DY of this payment amounted to 15.3%. In other words, this proposal represents the 2nd, additional, dividend payment during this year s a result of aforementioned developments. As such, if the GSM approves this dividend, the total amount to be paid to shareholders in 2024 would amount to EUR 4.1 per share, implying an overall dividend yield of 19.4%.
Below we provide you with the historical dividend per share and dividend yield of the Company.
Cinkarna Celje dividend per share (EUR) and dividend yield (%) (2012 – 2024*)
Source: Cinkarna Celje, InterCapital Research
*2024 includes both the approved dividend and the newly proposed dividend
