Cloetta : The Board of Directors of Cloetta AB proposes dividend for 2019
September 30, 2020 at 08:35 am
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The Board of Directors of Cloetta AB has decided to propose to distribute a dividend to the shareholders of SEK 0.50 per share for the 2019 financial year. The dividend is subject to approval at an Extraordinary General Meeting that is expected to be held during November 2020. Notice to attend the meeting will be issued at a later date.
In March 2020, the Board of Directors decided to withdraw its proposal for a dividend for the 2019 financial year. Given the high market uncertainty at the time, the Board prioritized to maintain Cloetta's strong financial position but expressed its ambition to summon the shareholders to an Extraordinary General Meeting during the second half of 2020 to resolve on a dividend, if conditions allowed.
The consequences of the COVID-19 pandemic can now be better assessed and therefore the Board has decided to call an Extraordinary General Meeting to resolve on a dividend of SEK 0.50 per share for the 2019 financial year.
'Considering Cloetta's strong balance sheet and resilient business model that is cash generative also in volatile times, the Board has now assessed that a dividend for 2019 is appropriate. The Board's proposal of a dividend per share of SEK 0.50 should be seen in relation to the previous proposal of SEK 1.00. Although we continue to expect the development for Cloetta to improve gradually, the pandemic is still ongoing and the Board consequently wishes to maintain a prudent approach', says Mikael Norman, Chairman of the Board of Cloetta.
In connection with an established dividend, Cloetta will repay the governmental grants of approximately SEK 1m received in Sweden related to the COVID-19 pandemic.
The notice to attend the Extraordinary General Meeting will be published in due course.
This is information that Cloetta AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 18:30 CET on September 29, 2020.
Contact
Nathalie Redmo, Head of IR and Communications, +46 766 96 59 40
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Cloetta AB published this content on 29 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2020 12:34:04 UTC
Cloetta AB is a Sweden-based company active in the chocolate and sugar confectionery market. The primary ingredient for its products is cocoa. The Company uses cocoa mass that is produced from seeds found in the fruit of cocoa trees grown along the equator. It produce and sells products within three main categories, namely Chocolate, which comprises chocolate wafers, plates, pralines and dragees; Sugar confectionery, which comprises foam, wine gums, liquorice, toffees, hard boiled candy, chewy candy, toffee/fudge/caramel and lollypops, and Refreshment, which comprises pastilles and chewing gum. The Company owns such brands, as Lakerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila, Red Band and Sperlari. The Company has 12 production units in six countries. In January 2014, it acquired Alrifai Nutisal AB. In May 2014, it acquired 75% of shares of Aran Candy Ltd and the brand The Jelly Bean Factory, Irish company producing and selling gourmet Jelly Beans.