Profil:
Zabka Group SA (Żabka)Zabka approves capital allocation policy; intends to pay 2025 dividend at 50 pct of net profit
Listed convenience store chain Zabka has approved a capital allocation policy which assumes, among other things, that the dividend for 2025 will correspond to 50 percent of consolidated net profit and will amount to 50-70 percent in subsequent years, depending on factors related to the group's business environment and planned investments, the company said in a market filing.
As indicated, the policy is based on four overarching principles aimed at ensuring long-term value growth.
The first is focus on growth - the priority of the Group's operations and the allocation of available capital is growth, with an increased target of opening over 1,300 new stores per year in Poland and Romania (between 2025 and 2028).
The second assumes that the target leverage ratio of 1.0x consolidated adjusted EBITDA after taking into account rental income - the group's medium- and long-term plans should take into account maintaining moderate net debt and adequate liquidity in order to maintain operational flexibility.
In addition, there is optionality in terms of M&A and distributions. As stated, the Group will maintain the ability to allocate capital to mergers and acquisitions that support its strategic potential or expand its geographic reach, while maintaining organic expansion as the foundation of its growth strategy; significant capital allocations to investments, such as mergers and acquisitions in a given year, may limit the capital available for other purposes during that period, including distributions to shareholders.
It was also indicated that surplus capital is to be returned to shareholders in the form of dividends, and that share buy-back programmes may be introduced in the longer term.
mcb/ han/
