PJSC M.video (M.Video-Eldorado Group, the Company, or the Group; MOEX: MVID), Russia’s leading e-commerce and consumer electronics retailer, announces that the Company’s Board of Directors has recommended that the Extraordinary General Meeting of Shareholders (“EGM”), which is scheduled for December 3, 2021, approve an interim dividend payout of RUB 6.3 billion, or RUB 35 per ordinary share of PJSC M.video.
The total interim dividends to be paid out as recommended by M.Video-Eldorado Group’s Board of Directors may amount to about RUB 6,292 million, or RUB 35 per ordinary share. The EGM will take place on December 3, 2021. The Board of Directors has recommended setting December 16, 2021 as the record date for dividends.
According to the dividend policy approved in February 2021, the Group intends to distribute no less than 100% of its adjusted net profit under IFRS 17 in the form of dividends. The Company pays dividends twice a year. The dividend policy also takes into account M.Video-Eldorado Group’s capital structure and capital expenditure requirements (including new strategic initiatives and further digital transformation) and aims to provide the flexibility to ensure the Company’s financial stability as it implements its new strategy. At the same time the new policy offers a more transparent mechanism for investors to analyze potential dividend income going forward.
Dividends paid in 2020 amounted to RUB 12.2 billion (RUB 68 per ordinary share), which corresponds to 100% of the Company’s adjusted net profit under IFRS 17 for FY 2020.
Alexander Tynkovan, Chairman of the Board of Directors at M.Video-Eldorado Group, commented:
Going into 2021, M.Video-Eldorado set the ambitious goal of doubling its GMV to RUB 1 trillion by 2025. Despite fierce competition and the pandemic-related challenges and restrictions, the Company managed to achieve significant progress across key business lines in 9M 2021, delivering a double-digit growth in turnover and rapidly advancing its mobile platform and OneRetail technologies. More importantly, M.Video-Eldorado has maintained the pace of its transformation into a retail tech company and is implementing data analytics in the majority of its business processes, which will yield even higher growth and efficiency in the near future. The Board of Directors supports management’s commitment to distribute all profit to the shareholders.