The Management and Supervisory Board of the company proposed HRK 95.51m to be allocated to retained earnings.

Ericsson Nikola Tesla published the Convocation to the GSM which will be held on 26 June 2020. The Management and Supervisory Board of the company proposed the net profit of 2019 of HRK 95.51m to be allocated to retained earnings. This of course implies no dividend payment in 2020.

Given the current situation regarding the Covid-19 pandemic and the implications and uncertainties which come with the situation, such a proposal does not come as a surprise. In the graphs below, we are bringing you a historical overview of the company’s dividend per share and dividend yield.

In Q1, the company recorded a decrease in sales of 7.6%, a decrease in EBITDA of 38.1% and a net loss of RON 12.3m.

In Q1, sales of Sphera amounted to RON 198.3m, representing a decrease of 7.6% YoY. Such a decrease came mainly due to Covid-19 crisis, following extensive lockdown measures implemented around the globe.

Restaurants were mandatory closed in Italy starting with the second week of March and in Romania, a military ordinance drastically restricted the movement of people and closed all exposed business, starting with the fourth week of March. Starting 18th of March 2020, the restaurants are closed, with the temporary closure estimated to last until 15th of May 2020. As a result, in March the Group witnessed a 50% overall decrease in net sales. The company notes that during this period, the focus was shifted on Delivery and Drive Thru channels in order to mitigate the negative impact of the crisis (closed food courts).

When looking at operating expenses, they reached RON 190.4m (-0.8% YoY). The decrease mostly on the back of lower food and material expenses of 13.9%. As a result of the above mentioned, EBITDA decreased by 38.1% to RON 16.8m. Such a result puts the EBITDA margin to 8.5% (-4.2 p.p. YoY).

Restaurant operating profit decreased to RON 7.9m (-65.3%). Excluding the impact of IFRS 16, restaurant operating profit reached RON 7.4m. General and administration (G&A) expenses reached RON 13.8m, representing an increase of 6.6% YoY.

In Q1, the company recorded a net loss of RON 12.3m compared to RON 1.3m in Q1 2019.

In Q1, the company recorded an increase in sales of 4.7%, increase in EBITDA of 203% and a net profit of RON 80m.

In Q1 of 2020 Electrica recorded an increase in revenues of 4.7% YoY to RON 1.66bn. Such an increase could mostly be attributed to an increase on the electricity supply segment. Also, during Q1, the company recorded an increase of 3.2% of revenues from the electricity distribution.

The expense for electricity purchased decreased by 8.6% (or RON 98m) to RON 1.04bn. This decrease could mainly be attributed to the reduction of electricity costs on the supply segment, a positive effect slightly alleviated by the increase in electricity costs needed to cover NL, as well as the costs of green certificates.  As a result of the operating increase in revenues and a decrease in operating expenses, EBITDA surged by 203% to RON 224m. Such a result improved the EBITDA margin by 9 p.p. to 14%.

Going further down the P&L, operating profit amounted to RON 100m, compared to RON -47m in Q1 2019. The net financial result decreased by RON 2.5m, as a result of the increase in finance cost, correlated with the increase in external financing.

In Q1 the company recorded a net profit of RON 80m, compared to RON -41m in Q1 2019. Such a result puts the profit margin at 5%.

Turning our attention to CAPEX, in Q1, Electrica invested RON 13.1m, representing a decrease of RON 10m YoY. This decrease was mainly determined by a lower level of investments planned in the distribution segment. The volume of investments had a material impact and, according to Electrica’s expectations, will continue to have such impact on the results of Electrica’s operations, Electrica’s indebtedness and future cash flows.

The company states that CAPEX in the distribution network will only have the anticipated positive impact on Electrica’s result of operations to the extent they are recognized in the Regulated Asset Base by ANRE and considering the rate of return approved by the regulatory authority.