Vinamilk to spend half of profit on dividend

Friday, Mar 23, 2018 13:44

The Viet Nam Dairy Products JSC (Vinamilk) plans to spend half of its 2017 post-tax profit on dividend. — Photo

Viet Nam Dairy Products Joint Stock Company (Vinamilk) has announced plans to spend half of its total post-tax profit in 2017 on paying cash dividend.

The proposed dividend payment is included in the company’s files for the upcoming annual shareholders’ meeting, which is scheduled for March 31.

Vinamilk last year posted a yearly increase of 10 per cent in its post-tax profit, which reached VND10.3 trillion (US$456.8 million).

Thus, the total dividend payout that Vinamilk may make for 2017 could reach VND5.1 trillion.

The proposed dividend payout for 2017 is lower than the figure for 2016, which was equal to 83 per cent of the company’s earnings in 2016.

Vinamilk on August 31, 2017 made the first dividend payment for 2017, worth VND2,000 (9 US cents) per share, and plans the second dividend payment of VND1,500 per share on March 30, 2018.

The remaining dividend for 2017 is VND1,500 per share. Vinamilk will finalise the list of beneficial shareholders on June 6 and make the final payment on June 26.

Vinamilk targets VND55.5 trillion in total revenue for 2018 and VND12.8 trillion in pre-tax profit.

The largest dairy producer also plans to make a dividend payment that is equal to 50 per cent of the post-tax profit made in 2018.

The first payment for the 2018 dividend is scheduled in the third quarter of this year, worth VND2,000 per share, and the second payment is scheduled for May or June 2019.

In addition, Vinamilk plans to issue a maximum of 290.3 million bonus shares for its current shareholders at a 5:1 ratio, meaning each shareholder will receive one bonus share for every five shares he holds.

The share issuance will raise the firm’s charter capital by a maximum of VND2.9 trillion to VND17.4 trillion.

At the upcoming shareholders’ meeting, the management board will propose that shareholders increase the number of management board members for the 2017-21 period to 11 members from the current nine members. — VNS

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