CTT cancels dividend due to Covid-19
The company expects revenues to fall in the coming months because of the pandemic. It has therefore decided to reverse the decision to remunerate shareholders, but also to pay bonuses to workers.
The CTT will no longer pay dividends. The postal company led by João Bento reversed the decision to remunerate the shareholders, based on last year’s accounts, in view of the drop in revenues expected for the coming months because of Covid-19. It will also not reward the management, nor any of the other workers.
“Given the economic uncertainty and the still unclear notion of the Covid-19 crisis, and despite the solid position of the balance sheet currently available to the company, the Board of Directors considered it relevant, both for the company and its stakeholders, to reverse its intention to propose to the shareholders’ meeting a dividend of 0.11 euros per share,” the CTT mentioned in a press release sent to the CMVM.
“The Board of Directors will propose to the general shareholders’ meeting that the 2019 net income is allocated to retained earnings and, additionally, that no annual profit sharing is distributed to CTT’s employers and executive members of the Board of Directors,” adds in the same press release in which it alters the date of the main meeting from April 21st to 29th, which will be held by telematic means.
The CTT explains the decision to cancel the dividend, as well as the premiums, with the expected drop “in income from mail, B2B parcels and financial services over the coming months.”
The company led by Joao Bento states that “it remains committed to delivering long-term sustainable returns and remuneration to its shareholders,” but given the exceptional circumstances, “it considers essential to prioritize both the immediate continuity of its business and investment in initiatives to continue helping our customers in their e-commerce activities.”
