What's Cooking? FIRST LOOK : dividend of €10, incl. a € 5.5 ‘special' after Savoury sale

As What's Cooking? sold in January'25 the Savoury business unit, it is reported as discontinued in its FY24 figures. Recall that this transaction resulted in a net Equity Value for What's Cooking? of approximately €100m after costs incurred.


They will pay a total gross dividend of €10 per share consisting of a € 5.5 ‘special' dividend payable in June 2025 and a ‘normal' dividend payable early July 2025 of €4.5 per share. What's Cooking? believes the special dividend is justified given the successful completion of the Savoury business unit disposal early 2025 that is putting the company back in a positive net cash position after disposal. The dividends also leaves them with sufficient resources to execute its long term strategy including the organic growth projects and focus on well-chosen M&A projects.

We maintain our Accumulate rating and € 135 Target Price as What's Cooking? looks to FY25 with confidence and -bar unforeseen circumstances- expects the continuing REBITDA to be between € 34m and € 40m in FY25 (excluding the intended acquisition). They expect to significantly invest in its Opole (Poland) new factory development which will temporarily double CapEx compared to historical averages for the Ready Meals business – in order to drive significant organic growth from FY27 onwards. The earnings after taxes are expected to be positively influenced by € 13m related to the disposal of the Savoury business whilst the Sveltic intended acquisition is expected to complete in 1H25 and immediately contribute to its results.