"Magnet" will send more than half of the profits to dividends

Taking into account the interim dividends for 2017, the shareholders of Magnit will receive 69.5% of last year's profit of the retailer.
The Board of Directors of Magnit recommended that the shareholders' meeting approve dividends in the amount of 13.8 billion rubles, based on 135.5 rubles. per share, the grocery retailer said. This is almost 39% of the company's annual net profit under IFRS. However, taking into account the 10.9 billion rubles paid by the retailer, interim dividends for the first half of 2017, in total, shareholders will receive 69.5% of last year's profit.

As a result of 2016, Magnit directed 26.3 billion rubles for dividends, or 48% of profits. In 2017, the net consolidated profit of Magnit decreased by 34.7% to 35.53 billion rubles, revenue increased by 6.4% to 1.143 trillion rubles.

Shares of Magnit at the opening of trading in the Moscow Stock Exchange after the announcement of dividends went up, but then their price began to be adjusted downward. By 10:45 the shares of "Magnit" were traded at a price of 5157 rubles. for a paper (-0,14% to the close of previous trades).

In April, the general director of "Magnit" Khachatur Pombukhchan said that the retailer should continue to pay dividends in the amount of at least 40% of net profit.

At the end of January 2018, Pombuchkhan, then the financial director of the company, said that Magnit could give up dividends this year. However, in February, the day of announcement of the sale of the bulk of the shares of the founder of the network of Sergei Galitsky to VTB Group, Magnit announced that the payments would follow.

"Magnet" is the largest Russian retail chain by the number of stores. Under the management of the company at the end of March there were 16,625 stores. In terms of revenue, the company is inferior to the leadership of X5 Retail Group.