Fontana weighs hike in dividend policy
Published:Wednesday | February 17, 2021 | 4:49 AM
Pharmacy operator Fontana Limited last paid annual dividend that equated to around 38 per cent of profit. And it wants to keep future distributions just above that level at 40 per cent. But that remains an aspiration on which the company is still to make a decision.
“Our goal is absolutely to continue with a minimum of a 40 per cent dividend,” said Fontana CEO Anne Chang. “That’s our goal. However, given the uncertainty with everything and COVID-19, we cannot say with 100 per cent certainty, but that’s our intention,” she told the Financial Gleaner.
Fontana’s current dividend policy is set at 25 per cent distribution. Its last annual payout rose above that at 38 per cent during the pandemic, amounting to nearly $100 million, amid gains in both sales and profit.
The gains flowed beyond the pharmacy company’s last fiscal period, which ends annually in June. Its most recent quarter ending December 2020 produced profit of $249 million or 20 cents per share, up from $195 million or 16 cents per share.
Revenues for the quarter totalled $1.54 billion, up 10.3 per cent.
Fontana sees the potential for more gains this year under the vaccine programme, if the Government decides to carve out space for its private distribution.
“This is entirely up to the Ministry of Health, but we have totally made it clear that we want to help with this vaccination roll-out in any way possible,” Chang said.