Egypt's Juhayna pays dividends despite weaker 2011 profits

Ahram Online, Monday 26 Mar 2012

Leading dairy producer says it will pay out LE0.15 per share despite last year's middling performance

Juhayna saw its 2011 profits drop an annual 18 per cent to LE186 million

Despite seeing overall losses, leading Egyptian dairy producer Juhayna Food Industries, will distribute a dividend of LE0.15 per share for the 2011 financial year, the company announced on Sunday.

The sum implies a payout ratio of 57 per cent and a yield of 3.4 per cent. No date for the payment was announced.
Juhayna's 2011 net profits slid 18.4 per cent below that of 2010, falling to LE186 million as troubles for Egypt's economy took their toll on the country's leading producer of milk and juices.
Cairo-based investment bank Beltone Financial said the news came as a surprise as they had expected Juhayna to start paying dividends from their 2012 profits. 
The company's decision, Beltone explained in a note on Monday, might signal that "management does not see acquisition targets at present".
Earlier in March, Juhayna unveiled plans for LE750 million worth of additional investments in 2012 as it attempts to boost its production capabilities. 
The new investments include the construction of a new yogurt plant, due to cost LE328 million and which will be partially-financed with borrowing from Egypt's Commercial International Bank (CIB).
Juhayna closed Sunday trading down 2.22 per cent at LE4.4 per share.
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