PJSC M.video (M.Video-Eldorado Group, the Company, or the Group; MOEX: MVID), Russia's leading e-commerce and consumer electronics retailer and part of the SAFMAR Group owned by Mikhail Gutseriev, announces that the Company’s Board of Directors has recommended that the Annual General Meeting of Shareholders approve a dividend payment of RUB 6.8 billion, or RUB 38 per ordinary share of PJSC M.video.
The total dividends to be paid out as recommended by M.Video-Eldorado Group's Board of Directors may amount to about RUB 6,831 million, or RUB 38 per ordinary share. The Annual General Meeting of Shareholders will take place on May 7, 2021. The Board of Directors has recommended May 18, 2021 as the record date for dividends.
Based on the Company’s 1H 2020 performance, M.Video-Eldorado Group paid out dividends in the amount of RUB 5.4 billion, or RUB 30 per ordinary share of PJSC M.video. Thus, the total of the dividends to be paid out for FY 2020 may reach RUB 12.2 billion (RUB 68 per ordinary share), which corresponds to 100% of the Company’s 2020 adjusted net profit under IFRS 17.
The Board’s recommendations are fully in line with the new dividend policy adopted in February 2021. According to the policy, the Group plans to distribute no less than 100% of its adjusted net profit under IFRS 17 as dividends. The Company intends to pay dividends twice a year. Introduced as part of the Company’s new strategy, the dividend policy reflects M.Video-Eldorado Group’s strengthened financial performance and will complement the Company’s long-term growth objectives. The policy fully takes into account the Company’s capital structure and all required capital expenditures (including all new strategic initiatives and further digital transformation) and will allow for flexibility to ensure the Company's financial stability as it implements its new strategy. At the same time the new policy provides a more transparent mechanism for investors to analyse potential dividend income going forward.