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MOSCOW, Apr 7 (PRIME) -- Russia's X5 Retail Group has no plans to change the dividend policy and has no plans to start a buyback program, CEO Igor Shekhterman told reporters on Tuesday.
"The supervisory board recommended dividends of 30 billion rubles for 2019 in March. This is 20% higher than we paid in 2018 and accounts for 82% of our adjusted net profit. We have no plans of changing the dividend policy," Shekhterman said, adding that the shareholders will meet to decide on the issue in May.
"We are not discussing buyback plans. I think in general that when such crises happen and everything is falling apart we must not pay much attention to the price jumps. The managers must focus and work on the transactions. The market is in panic, investors are uncertain and the share price in the period is not a good indicator," the CEO said.
The executive said that X5 will adjust its plans for store launch and repairs. The earlier plan was to launch 2,000 corner stores and supermarkets and repair 1,300 stores under the Pyatyorochka discounter brand, and 30 Perekryostok stores, but as Shekhterman said, "Today we already live in a different world."
The company plans to launch hard discounters in November and will change the attitude to the online segment.
Shekhterman separately said that the pace of revenue growth in January–March was higher than in the same period in 2019.
The depositary receipts of X5 Retail Group rose 2.56% to 2,406 rubles as of 10:46 a.m., Moscow time.
(77.7325 – U.S. $1)
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