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Jerónimo Martins’ Board of Directors decided to review the dividend distribution proposal due to the “current global context and the high prevailing uncertainty” with the covid-19 pandemic.
In the statement with the presentation of results, the owner of Pingo Doce reveals that she has decided “to review the proposal for the distribution of dividends initially presented, exceptionally reducing the payment to 30% of the consolidated results”.
Thus, instead of the proposal of 216.8 million euros previously announced, Jerónimo Martins “decided to propose at the General Meeting, to be held on June 25, the distribution, for now, of dividends amounting to 130.1 million of euros “.
Jerónimo Martins will pay 20.7 cents per share, instead of the 34.5 cents previously proposed, which translates into a 40% reduction in a total of 86 million euros.
Despite Jerónimo Martins’ “resistance and responsiveness,” the company decided to apply this cut to dividends due to the “adverse context and marked by high uncertainty and dynamism.”
Jerónimo Martins also mentions the “insufficient information currently available to rigorously identify and evaluate all factors with a potential impact on activity in the near future.”
“In line with the supposedly conservative management of the balance sheet that has been followed for a long time, the Board of Directors believes that at this time, it recommends reinforcing prudence, even so as not to compromise the ability to materialize the opportunities that arise,” adds the company. , which usually distributed 50% of the year’s earnings to shareholders.
Despite the cut, the Board of Directors of Jerónimo Martins “does not exclude the possibility of proposing, based on the company’s free reserves, the distribution, by the end of the year, of the amount of the difference for 50% of the forecast of initial payment, if the evolution of the epidemiological situation and its impacts allow it. “
The new 20.7-cent dividend corresponds to a 1.3% return. The shares closed today at 15,705 euros.
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