The board of Russia's largest electronics retailer M.Video-Eldorado recommended a dividend of RUB38 per share for 2H20, making a total payment of RUB6.8bn ($89mn) of 100% of net adjusted income for the period.
As reported by bne IntelliNews, most recently M.Video has set the guidance to double its gross merchandise volume (GMV) in five years, from RUB0.5 trillion in 2020 to RUB1 trillion ($13.5bn) by 2025. The company posted solid 2H20 IFRS results.
The announced dividend per share corresponding to 100% of adjusted net profit under IAS 17 is in line with expectations, BCS Global Markets commented on April 6, estimating the implied dividend yield at 5%.
"Total dividends for FY20 may reach RUB12.2bn, or RUB68/share (solid 9.4% year on year)," BCS GM commented, while affirming a Buy recommendation on M.Video's shares.
Last month, Safmar Group of Russian billionaire Mikhail Gutseriev has completed a secondary public offering in M.Video-Eldorado, selling 24.5mn shares, or 13.5% of capital, at RUB725 per share and raising RUB17.6bn ($240mn).
As followed by bne IntelliNews, the company is likely to further boost its online sales channels, as recently Russia's largest bank Sberbank signed a memorandum of intent on the joint development of its marketplace Goods.ru.
To remind, M.Video completed a mega-merger with rival Eldorado in March 2018 to form the biggest consumer electronics retail chain in Russia, and become a top ten European player.
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