Moscow, 22 September 2017 – The Supervisory Board of X5 Retail Group ("X5" or "the Company"), a leading Russian food retailer (LSE: FIVE), has approved a dividend policy for the Company.
The dividend policy sets a target payout ratio of at least 25% of X5 Retail Group’s consolidated IFRS net profit, provided that the Company’s financial position allows for it. When considering a dividend proposal to the General Meeting of Shareholders, the Supervisory Board will be guided by a target consolidated net debt/EBITDA ratio of below 2.0x, in line with the Company’s financing strategy.
X5 Retail Group Supervisory Board Chairman Stephan DuCharme said:
"I am very pleased that X5 Retail Group can in the near future start providing cash returns to investors in the form of regular annual dividends. The Supervisory Board has been carefully monitoring the Company’s successful implementation of its strategy, combined with strong operating and financial performance, and we believe that X5 has reached the stage where it may begin to pay dividends while continuing to meet its strategic targets.
"The decision to begin paying dividends does not reflect any change in our long-term strategic priorities. In the years ahead, X5 will seek to further strengthen its position as Russia’s leading food retailer through store base expansion, with a continued focus on its customers and on innovative solutions that support sustainable and efficient growth.
"The Supervisory Board intends to consider a dividend proposal for FY 2017 in accordance with the new dividend policy."