Yesterday, Transport Trade Services proposed RON 1.14 DPS, implying a DY of 3.8%. Furthermore, the Company published its 2024 budget, in which they expect revenue of RON 1.1bn (-5% YoY) and net income of RON 184m (-40% YoY).

According to the press release by Transport Trade Services (TTS) yesterday, the Company announced its dividend proposal, as well as its 2024 budget. In this overview, we’ll detail both.

Starting off with the dividend, the Board of Directors proposed the distribution of RON 68.4m from the 2023 net profit, which would imply a payout ratio of 45.2% of the individual net profit of the Company (RON 151.3m). This is in line with the Company’s dividend policy. On a per-share basis, this would imply RON 1.14 DPS or a dividend yield of 3.8% at the price before the announcement.

The proposal took into account the investment of RON 204.9m made in 2023. This also marks a 102.7% higher dividend than the one distributed from the 2022 net profit. The dividend proposal is subject to approval at the OGSM, which will be held on 30 April 2024. The ex-date and the payment date are yet to be announced.

TTS revenue and op. profit (2021 – 2024 budget, RONm)

Source: Transport Trade Services, InterCapital Research

On a consolidated basis, TTS budgeted a net profit of RON 1.1bn in 2024, representing a decrease of 5.3% compared to the 2023 preliminary results, but 17.7% higher than in 2022. At the same time, the budgeted operating profit is set at RON 220.5m, a decrease of 37.3% YoY, and 4.8% higher than the op. profit achieved in 2022.

A detailed breakdown of the 2024 budget, as well as more information in general regarding this news, can be accessed here.