The Tasty Binh Dinh Province’s Shareholders Are About to Receive an 88% Dividend

BLT has a modest 4 million shares circulating in the market. With this number of shares, the company is estimated to spend approximately VND 35.2 billion on dividend payments. The dividends are expected to reach shareholders on September 18, 2024. The majority of this amount will go to BLT‘s parent company, the Southern Food Corporation, which holds a 51% stake and is expected to receive around VND 18 billion.

The 88% dividend payout ratio was also approved at BLT‘s 2024 Annual General Meeting of Shareholders, despite the previous plan of only 5.8%. In the past two years, BLT has consistently exceeded its dividend payout plans. In 2022, the company proposed a 5.75% dividend payout, but eventually paid out 140% – meaning each share received VND 14,000.

Notably, BLT‘s 2023 Annual General Meeting of Shareholders approved a payout of 170.5% for 2022. However, after paying an advance of 30%, BLT proposed to suspend the remaining dividend payout (approximately 140.5%) due to financial difficulties and lack of capital. This was attributed to a sudden increase in cost of goods sold in July due to a surge in rice prices, which required the company to maintain rice circulation reserves and constrained their capital. Additionally, BLT needed to allocate capital for basic construction investments, estimated at VND 40 billion.

Nevertheless, with the actual payout of 140%, BLT‘s financial situation seems to have stabilized subsequently.

Foodstuffs Binh Dinh (BLT), formerly known as Nghia Binh Foodstuffs Company, was established in 1975. The company operates in the field of processing, trading, and exporting foodstuffs and agricultural products, with rice and cassava slices as its main products. Since January 2008, BLT has officially operated as a joint-stock company and has been traded on the UPCoM market since July 2017.

In terms of financial performance, BLT has not yet announced its results for the first and second quarters of 2204. For the year 2023, the company reported revenue of nearly VND 1.5 trillion, a 28% increase from the previous year, and a post-tax profit of VND 14.5 billion, a 46% increase. As of the end of the year, the company had approximately VND 70.5 billion in undistributed post-tax profits.

Chau An