Sotipapier to Distribute Dividend for 2023 Exercise on January 3, 2025
The last dividend related to the 2023 exercise will be distributed by Sotipapier on January 3, 2025. Each shareholder will receive 0.320 TND per share, net of 0.288 TND. Compared to the current course, the yield is 5.4%.
The year has been particularly challenging for the company. In September 2023, the factory was impacted by a fire. For safety reasons, production facilities and equipment were shut down. Thanks to the efforts of all stakeholders, activity resumed in October. To manage cash flow, an extraordinary general meeting held on October 26, 2023, voted in favor of postponing the distribution of dividends on the 2022 exercise profits, initially scheduled for September 13, 2023. The detachment took place on January 2, 2024.
The year 2022 was closed with a net profit of 25,980 MTND, but 2023 was limited to 2,690 MTND. A first general meeting was held within the regulatory timeframe and decided not to distribute dividends for the 2023 exercise. Since then, the company has regained its usual production pace and was able to close the first half of 2024 with a net result of 2,966 MTND. As of September 2024, the turnover totaled 79,751 MTND with a production of 36,848 tons. The market remains tense due to the rise in raw material prices, and the company had to manage to preserve its profitability.
The company continues to explore growth opportunities, as demonstrated by the acquisition of a 70% majority stake in Eco-Gad Suarl, a Tunisian company specializing in paper, cardboard, and plastic waste collection, treatment, and recycling. This operation is accompanied by an option to purchase the remaining shares of Eco-Gad. This integration will enable Sotipapier to optimize its recycling infrastructure and reduce its dependence on fluctuations in old paper and cardboard prices, consolidating its supply chain and strengthening its economic resilience.
A second general meeting was held on December 20, 2024, and voted in favor of rewarding shareholders in January 2025. The stock has shown good resistance throughout the year, posting an annual return of 3.02% at yesterday's close. Minority shareholders have been rewarded for their patience. Sotipapier remains one of the best industrial companies to invest in, but the horizon is medium to long-term.
