Ca Mau Fertilizer is about to spend more than 1,000 billion VND to pay dividends

Ca Mau Petroleum Fertilizer Joint Stock Company (Ca Mau Fertilizer, stock code: DCM) announced that it will allocate VND 1,059 billion to pay cash dividends in 2023 at a rate of 20%, meaning each share will receive VND 2,000.

According to the resolution announced on the afternoon of June 12, the Board of Directors of Ca Mau Petroleum Fertilizer Joint Stock Company announced to allocate approximately VND 1,059 billion to pay cash dividends at a rate of 20%. The last registration date to receive dividends is June 25 and payment is on July 11.

Previously, the company approved the 2023 profit distribution plan. Specifically, the accumulated profit after tax last year was VND2,533 billion and the company plans to distribute VND1,548 billion of this. The company will allocate VND332 billion to the development investment fund, VND112 billion to the reward and welfare fund. The company will allocate an additional VND34 billion to supplement the reward fund, equivalent to 20% of the profit after tax exceeding the approved business plan. The remaining portion of approximately VND1,059 billion is for dividends.

At the annual meeting on June 11, Mr. Tran Ngoc Nguyen, Chairman of the Board of Directors of Ca Mau Fertilizer, said that cash dividends are expected to be paid within 20 days after the meeting, significantly earlier than the good practice of within 3 months and the Enterprise Law of 6 months.

In response to some questions about the low dividend rate while the amount of cash held and profit plan, Mr. Van Tien Thanh - General Director of Ca Mau Fertilizer shared that with the specific business characteristics in the fertilizer sector with only a profit margin of 8-12%, the annual dividend rate as in previous years is also reasonable.

“Although the company has abundant cash flow, the demand for investment capital in the coming years is very high. Regarding investment orientation, we aim for efficiency, for example, the fine grain product introduced into the company's ecosystem since May has been effective. With such an investment orientation, I believe that it is more important to investors than just dividends,” Mr. Thanh analyzed.

At the end of the trading session on June 12, DCM stock price was at 39,450 VND, up 0.5% compared to the reference price. Compared to the price range at the beginning of the year, this stock has increased by about 22%. Today's liquidity reached about 163 billion VND, equivalent to 4.2 million shares successfully matched.

Ca Mau Fertilizer targets consolidated revenue of VND11,878 billion and after-tax profit of VND794.8 billion this year. The parent company's equity is VND9,850 billion. The board of directors said the company has accumulated cash flow to serve production and business, so there are no plans to increase capital to expand production.

In the first quarter, the company recorded revenue of VND2,885 billion, up nearly 2% over the same period last year. Pre-tax profit reached VND382.6 billion and after-tax profit reached VND349.6 billion, up 46% and 52% respectively over the same period last year. According to the company's management, the difference in revenue and profit growth came from the company's significant reduction in cost of goods sold.

Total assets as of the end of the first quarter reached VND15,743 billion, up slightly from VND15,237 billion at the beginning of the year. Liabilities were over VND5,452 billion, most of which were short-term debts.

Source: https://baodautu.vn/dam-ca-mau-sap-danh-hon-1000-ty-dong-chia-co-tuc-d217532.html