CEO says sees no reason for Magnit to pay lower dividends

MOSCOW, Feb 6 (PRIME) – There is no reason to reduce grocery chain Magnit’s dividends, CEO Jan Dunning said during a conference call on Thursday.

“OF course, it is up to the board of directors, the shareholders to decide on the dividends. At the same time, I see no reason, business reasons, to expect lower payments in the future,” Dunning said.

Dunning said that Magnit could revise the plans for store launch in case of improvement of the business environment and continuation of the sales recovery.

Earlier on Thursday, the company said in a report that it planned to launch about 1,300 stores, including closures in 2020. In 2019, Magnit launched 2,377 stores.

“An attempt to slow down the development in 2020 must not be perceived as a lack of trust in the long-term attractiveness of the market, this also does not speak of a lack of opportunities,” Dunning said.

“This is a signal of trust in the market position of Magnit, and in the focus on creation of value for the shareholders. If the environment is more favorable and our sales continue to recover, we can revise the goals.”

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