At the yesteray’s share price dividend yield is 7.2%.

Cinkarna Celje proposed distribution of net profit from the 2021 profit. To be specific, the management proposed EUR 16.4m to be distributed as a dividend, representing a payout ratio of 49.4%. The proposed dividend translates into EUR 21 per share, compared to EUR 17 paid in 2020.

At the current share price dividend yield is 7.2%. Ex-date was not yet announced.

Despite company posting strong net income of EUR 33.3m in 2021, strongly above its estimated profit of EUR 20m the management of decided to propose lower pay-out ratio of 49% instead of its usual 75%. They explain that it is due to the situation in the first quarter of 2022 that is extremely uncertain due to the further deterioration of the situation in supply chains and the consequent rising prices of strategic raw materials and energy sources. They say that they expect volatility to increase significantly, both in the area of product demand and in the area of raw material procurement and that they face great risks in the field of supply of strategic raw materials, where shortages of certain types of raw materials and energy sources are not excluded, which can mean an extraordinary increase in prices or even an inability to supply and the associated risk of stopping production. Regardless of the good first business estimates in the first quarter of 2022, we estimate that it will not be possible to balance the effect of increased purchase prices with a change in sales prices in all periods of the year, so they expect a decrease in realized sales margins.

This dividend proposal is below market consensus published on Finance recently that expected Cinkarna to pay EUR 31 of dividend. Therefore, we can expect counter proposals of any of their shareholders.

In the graphs below, we are bringing you a historical overview of the company’s dividend per share and dividend yield.

Dividend per Share (EUR) and Dividend Yield (%) (2012 – 2022)