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X5 Group’s supervisory board to recommend to shareholders not to pay 2022 dividends

The recommendation is based on various factors

MOSCOW, March 17. /TASS/. The Supervisory Board of X5 Group will recommend to the retailer’s shareholders not to pay dividends for 2022, the company said in a statement on Friday.

"In view of the current market conditions, ongoing regulatory constraints, and consistent with last year’s profit allocation, the Supervisory Board will recommend to X5’s General Meeting of shareholders not to distribute a dividend for 2022," the statement reads.

"This recommendation is based on various factors, including the need to strengthen the company’s focus on supporting customers and suppliers to maintain a stable supply chain and keep store shelves sufficiently stocked. <…> While the company remains committed to its long-term goal of returning company profits to shareholders, the Supervisory Board believes it would be in the company’s best interest to temporarily deviate from its dividend policy as long as current uncertainties and regulatory conditions prevail," according to the statement.

X5 dividends amounted to almost 20 bln rubles, or 73.645 rubles per GDR, for 9M 2020, 30 bln rubles, or 110.49 rubles for GDR, for 2020, and 20 bln rubles, or 73.65 rubles per GDR, for 9M 2021. The Supervisory Board of X5 Retail Group approved changes into the company’s dividend policy in late November 2021 and recommended the payment of dividends twice per year. However, in March 2022 as a result of the geopolitical and market situation the Supervisory Board decided not to pay dividends for full 2021.