AB Linas Agro Group owns a group of 70 agribusiness and food companies, hereinafter referred to as the Group. Per the approved Dividend Policy, allocating at least 20% of the Group’s consolidated net profit for the previous year to dividends annually is proposed.
“The approved Dividend Policy should contribute to the increase of the Company’s value: it will enable the Group to continue to grow and at the same time should meet the shareholders’ expectations of annual returns,” says Mažvydas Šileika, Chief Financial Officer of AB Linas Agro Group.
According to M. Šileika, with the current portfolio of activities, the Company will aim to generate consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR 70-90 million annually and to achieve a return on capital employed of 12%.
“Other objectives are also important. As interest rates rise, debt level indicators such as net financial debt adjusted by readily marketable inventories (RMI) and divided by EBITDA ratio become particularly important, and the Group will strive to keep the latter at a maximum of 4.
We have set these targets for the next four years, during which we have the ambition to lead in the farmer services business, to develop the trading of raw materials efficiently, and to expand our food business portfolio actively. All these objectives are achievable and provide a sound basis for building corporate value. Therefore, we are clearly communicating to investors what dividend return could be expected,” says M. Šileika.
The Dividend Policy document of AB Linas Agro Group is attached.
