Wed, Apr 19, 2017 - Page 12 News List

Charoen Pokphand to pay its largest-ever cash dividend

By Kuo Chia-erh  /  Staff reporter

Poultry producer Charoen Pokphand Enterprise (Taiwan) Co Ltd (台灣卜蜂) yesterday said that its board has approved a plan to distribute a cash dividend of NT$3 per common share, the highest dividend in the company’s history.

That translates into a dividend yield of 5.23 percent, based on the shares’ closing price of NT$57.3 in Taipei trading yesterday.

PAYOUT RATIO

The company, which operates a poultry slaughtering and meat processing business, reported a net profit of NT$1.26 billion (US$41.4 million) last year, 83.46 percent growth from NT$687.8 million the previous year, company data showed.

The proposed dividend represents a payout ratio of nearly 63.7 percent, as last year it made NT$4.71 earnings per share.

Consolidated revenue last year rose 9.8 percent year-on-year to NT$18.2 billion, primarily due to higher poultry prices and a bigger revenue contribution from its food processing business, the company said.

EXPANSION PLANS

Eying growing momentum in the food processing sector, the company said this year it is to allocate NT$1 billion for capital expenditure to purchase equipment and expand its production capacity.

The company is to hold an annual shareholders’ meeting on June 15 in Nantou, where shareholders are to vote on the dividend proposal.

In related news, Great Wall Enterprise Co Ltd (大成), which also makes livestock feed and meat products, has proposed distributing a cash dividend of NT$1.5 per share.

Based on last year’s earnings per share of NT$3.01, the dividend represents a payout ratio of about 50 percent, company data showed.

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