C.W. Mackie pays out impressive dividend for FY21

Tuesday, 23 November 2021 04:55 - - {{hitsCtrl.values.hits}}

C.W. Mackie PLC, a highly diversified publicly listed trading company in the country, has paid a first and final dividend of Rs. 7 per share (dividend pay-out 89%), amounting to Rs. 251.92 million out of the profits for the year ended 31 March 2021, was approved by the shareholders at the virtual Annual General Meeting held recently.

The Company, amidst numerous business disruptions and challenges by the COVID-19 pandemic, recorded an impressive profit for the period ended 31 March 2021, which, after charging income tax expenses of Rs. 120.8 million, was Rs. 284.5 million. This is one of the best financial performances posted by the Group in recent years, primarily due to the outstanding contributions made by the Fast-Moving Consumer Goods Cluster (FMCG) and the Industrial Product Cluster (IPC).

The performance of the Industrial Product Cluster (IPC), which comprises of light industrial products, electrodes, refrigeration and air-conditioning components and marine paints, has been of great promise during the reporting period. IPC, one of the fastest-growing business clusters in the Group, contributed more than one-third of the company’s earnings before interest and tax (EBIT).

As further elaborated in the Chairman/Chief Executive Officer’s review of the Annual Report 2020/21, the management of IPC is highly optimistic of the future business potential of this cluster in the backdrop of the mega construction projects and other associated construction activities forecast by the Government of Sri Lanka, in particular, the much-publicised Colombo Port City developments. The company forecasts the profit contribution from IPC to increase significantly in the foreseeable future.

C.W. Mackie has been paying a steady dividend in recent years. The current market price per share is Rs. 57.50 and the market capitalisation of the company as of the end of October 2021 was Rs. 2.1 billion.