JSC Olainfarm implements dividend policy; annual dividend payout to be at least 20%

JSC Olainfarm approved dividend policy with an aim to create a well-considered, balanced and transparent profit distribution model to ensure regular dividend payments to shareholders and to reach long-term business targets of JSC Olainfarm.

The Management Board of JSC Olainfarm when calculating dividend amount shall observe the following principles:

• “dividend stability principle” which states that JSC Olainfarm annually strives to pay shareholders dividend at least 20% from the previous year’s net profit.
• “balance principle” that sets reasonable balance between shareholders income, cash flow forecasts and long-term development needs of JSC Olainfarm.
• “transparency principle” which states that arguments for setting annual dividend amount is communicated to involved parties.

A share of net profit of JSC Olainfarm which remains after dividend payment is retained in the company for further investments in the company’s development.

The Management Board of JSC Olainfarm after approval of annual report prepares a dividend payment recommendation based on dividend policy principles as well as terms specified in Latvia’s legal acts, JSC Olainfarm contractual liabilities and obligations.

The Management Board submits its dividend payment recommendation to the Supervisory Council which may draft its opinion on the Management Board’s recommendation and inform with it the general meeting.

The general meeting votes on dividend payment based on the recommendation of the Management Board and the opinion of the Supervisory Council.

JSC Olainfarm is one of the largest companies in the Baltic States with more than 45 years of experience in production of pharmaceuticals and chemical and pharmaceutical products. The basic principle of the company is to produce reliable and effective top quality products for Latvia and the whole world. Currently, JSC Olainfarm products are exported to more than 60 countries worldwide, including the Baltic States, Russia, other CIS countries, Europe, North America, Asia and Australia.

Additional information:  

Jānis Dubrovskis

Investor Relations Advisor of JSC Olainfarm

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