M.Video-Eldorado Group plans RUB 5.4 bn dividend

06.10.2020 10:52

6 October 2020, Moscow, Russia. PJSC M.video (M.Video-Eldorado Group, M.Video-Eldorado, the Company, or the Group; MOEX: MVID), Russia’s largest consumer electronics retailer by revenue and part of SAFMAR Group owned by Mikhail Gutseriev, announces that the Company’s Board of Directors has recommended a dividend of RUB 30 per ordinary share of PJSC M.Video to be approved by the Extraordinary General Meeting of Shareholders.

This would put the overall dividend recommended by the Board at RUB 5,393 mn. The Extraordinary General Meeting of Shareholders is scheduled for November 9, 2020. The Board of Directors recommended for approval November 20, 2020, as a record date for dividend distribution.

Said Gutseriev, Chairman of the Board of Directors at PJSC M.Video, commented:

‘M.Video-Eldorado Group consistently delivers strong financial performance, year after year. Despite the fetters that non-food retailers had to contend with in the first half of 2020, the Company was able to achieve growth across a range of financial indicators, including revenue and net profit, all while maintaining market position and reducing leverage. The Board of Directors is satisfied with the results and recommends a dividend in the amount of RUB 5.4 bn, corresponding to 100% of adjusted net income in the six months of 2020’.

Alexander Izosimov, M.Video-Eldorado Group CEO, said:

‘The results of the first half of 2020 reconfirmed efficiency of the Group’s business model as well as its resiliency in turbulent environment. This allows us to plan for a return to regular dividend payments. In the coming months, the Group expects to present its updated business strategy and a corresponding dividend policy’.

In December 2019, following the integration of the two businesses, the Company paid a RUB 6 bn dividend.

In the first six months of 2020, Group’s net income adjusted for loss of an associate and a joint venture amounted to RUB 5,327 mn (under IAS 17).