Filtisac issues first dividend in two years after profit turnaround

AFRICAN STOCKS AND FINANCEMay 19, 2024 at 1:54 PM UTC

TLDR

BRVM-listed packaging company Filtisac to distribute dividends after 2 years, reporting a significant increase in net profit to 3.08 billion FCFA in 2023.
Despite a 1,897% profit growth compared to 2022, dividend distribution of 2.05 billion FCFA falls short of market expectations.
The distribution rate is 66%, with a net dividend per share of 130 FCFA, representing a 6.84% yield at the time of announcement.

After two years without offering dividends due to poor financial performance, BRVM-listed packaging solutions company Filtisac will distribute a significant portion of its 2023 profits to shareholders.

Following a loss of over 1 billion FCFA ($1.6 million) in 2021 and a minimal profit of 154 million FCFA in 2022, which did not result in a dividend, the company has reported a net profit of 3.08 billion FCFA for 2023, an increase of 1,897% compared to 2022.

This improvement led to a dividend distribution of 2.05 billion FCFA. Despite this, the payout remains below market expectations, which were accustomed to a full allocation of profits to dividends. The distribution rate is 66%, a net dividend per share of 130 FCFA, or a yield of 6.84% as of the time announced.

Key Takeaways

Despite the turnaround, Filtisac's annual result fell compared to earlier projections due to a 28% drop in cocoa production for the 2023/2024 campaign, leading to decreased sales. Turnover declined by 15.94%, reaching 38.22 billion FCFA compared to 45.46 billion FCFA in 2022. Operating expenses were 35.74 billion FCFA, down from 38.4 billion FCFA in 2022. Consequently, operating profit was 1.6 billion FCFA, improving from a deficit of 203 million FCFA the previous year. An 86% increase in financial income to 1.83 billion FCFA also contributed to the net profit of 3 billion FCFA for 2023.

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