This morning, the company proposed no dividend payment. The proposal is subject to approval on GSM, which is to be held on 14 June 2023.

Cinkarna proposes no dividend payment as the Company is a beneficiary of aid with the goal to mitigate the effects of the energy crisis (ZPGOPEK). According to the aid, the company that claimed aid for the year 2023 must notify the authority no later than two months after the payment of profits, purchase of own shares, payments or bonuses, etc. In this case, the company must repay the funds received, which would be a decision of the authority.

Consequently, the loss of the aid would mean greater material damage to Cinkarna (aid is currently projected at EUR 5 – 7m). After weighing everyone’s interests, the Management Board and the Supervisory Board came to the conclusion that the company’s interests prevailed in this case. The loss of those funds would have a negative material impact on the company and therefore shareholders. Because of this, the MB and SB of the company emphasized that is not necessary to distribute the balance sheet profit to the shareholders. However, we note that last year Management proposed a dividend payment of EUR 21 per share, but the Company received a counterproposal of EUR 31.89 per share from one of its shareholders, which was later approved.

Dividend per Share (EUR) and Dividend Yield (%) (2012 – 2023)

Source: LJSE, InterCapital Research