Today, we bring you our updated overview of the indebtedness and capital structure of Slovenian companies which comprise the SBITOP index using the FY 2022 results. It should be noted that we excluded NLB Banka, Triglav, and Sava Re from this comparison due to the nature of their business operations. Finally, a few Slovenian companies published their Q1 results, but we used FY 2022 data so all the companies have the same denominator.

At the same time, Luka Koper, Cinkarna Celje and Krka operate at a negative net debt, meaning their cash position (short-term financial assets + cash and cash equivalents) exceeds their financial debt. Because of this reason, they were excluded from the net debt/EBITDA graph. To make up for this, we decided to show the differences in P/E and cash-adjusted P/E of these two companies. When comparing these two numbers in these companies, we can see that Cinkarna Celje has a P/E of 4.9x, while the company has a cash-adjusted P/E of 3.8x. At the same time, Krka has a P/E of 9.6x, whilst the company has a cash-adjusted P/E of 8.2x. Finally, Luka Koper’s share is trading at P/E of 12x, while cash-adjusted base amounts to 9.8x.

P/E and Cash-adjusted P/E

Source: LJSE, InterCapital Research

Out of the remaining companies (Petrol and Telekom Slovenije), Petrol has the highest net debt/EBITDA ratio of 5.4x. It should also be noted that Petrol is currently under a lot of persisting pressures regarding its margins and financial position due to government regulation of petrol, electricity and gas prices. Further, Telekom Slovenije has a net debt/EBITDA ratio of 1.9x. Considering that Telekom Slovenije operates in the telecommunications industry, where investments into new infrastructure (and thus the need for a lot of cash to finance these projects) are taken in the form of debt, the Company’s net debt is at a higher level in comparison to their EBITDA.

Net Debt/EBITDA

Source: LJSE, InterCapital Research

We looked at how much additional debt the companies could take in order to reach 3x EBITDA, which in the region is considered a breaking point and a red flag in terms of indebtedness. Further, we note that Petrol’s deviation obviously comes from much lower results in 2022 due to government regulation. The situation should stabilize and improve in the upcoming period.

Potential Additional Debt (EUR m) to reach 3x EBITDA

Source: LJSE, InterCapital Research

We also took a look at the capital structure of the observed companies. Cinkarna Celje leads the way with virtually 100% equity, followed by Krka with 99.4%, Luka Koper with 89% and Petrol & Telekom Slovenije, both with 58.2% of equity in its structure of financing.

Capital Structure of Select SBITOP Companies

Source: LJSE, InterCapital Research

Podravka held their GSM yesterday during which the company’s shareholders approved a dividend of EUR 2.65 per share. According to the price before the announcement date, this translates to a dividend yield of 2.91%. Ex-date is set for June 15th 2023.

At the Group level, this would mean that EUR 18.6m would be paid out as dividends, representing a payout ratio of 37.9%, and a gross dividend of EUR 2.65 per share. Compared to last year Podravka increased the dividend amount by 53.5% YoY. (2022 dividend: EUR 1.73 DPS).

In the graph below, we are bringing you a historical overview of the company’s dividend per share and dividend yield. Note that the yields were calculated based on the closing price the day before the initial dividend proposal. The ex-date for the payment is set for 15 June 2023, the record date is set for 16 July 2023, and the payment date is set for 14 July 2023.

Podravka dividend per share* (EUR) and dividend yield (%) (2016 – 2023)

Source: Podravka

*converted using CNB’s EUR/HRK exchange rate at the time

At the share price before the announcement, this would amount to a DY of 9.3%.

Atlantska Plovidba held its General meeting of shareholders, and on it, they announced the approval for the distribution of profit from the financial year 2022. The dividend payment amounts to EUR 5 DPS, and a dividend yield of 9.3%.

The ex-date is set for 6 July 2023, while the payment date is set for 28 July 2023.