By Stephen Nakrosis
A2 Milk has established its first dividend policy, with the initial interim dividend expected to be declared in February of next year, the dairy company said.
The dividend policy targets a payout ratio range of 60% to 80% of net profit after taxes, excluding certain items. Dividends are expected to be announced on a semi-annual basis, in February and August of each year.
Pip Greenwood, the company's chair, said a2 has made progress in developing its operating model and creating a resilient business. Given this, and the company's balance-sheet position, the board decided to introduce a dividend policy, Greenwood added.
The company said its board would continue to review capital-management options which could lead to further capital returns to shareholders, likely in the form of special dividends.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
November 21, 2024 15:09 ET (20:09 GMT)
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