From now on, bpost will distribute 30 to 50 percent of net profit to shareholders. This emerges from a new strategic vision that the Post Group released on Tuesday. When the stock exchange opened, the Postgesellschaft’s share fell by almost 9 percent.
That is much less than the previous dividend policy, in which shareholders could expect a profit distribution of 85 percent. Bpost wants to put more profit into investments.
The corona crisis has created a new reality, according to the postal company, with spectacular growth figures for parcel activities. According to the postal company, the transformation project that has already started needs to be accelerated.
To support and accelerate this business transformation, bpost’s Board of Directors has adopted a modified framework for capital allocation that strives for a balance between “investing in growth, rewarding shareholders and exercising financial discipline”. Bpost therefore wants to invest more in parcel activities and e-commerce logistics: the company’s growth engine.
For the shareholder this means a review of the future dividend policy. Bpost aims to pay between 30 and 50 percent of the net profit. “With this revised framework for capital allocation, we have taken into account the perspectives of all of our stakeholders. We play an important social role in securing long-term employment and ensuring service quality. At the same time, we need to meet the expectations of our financial counterparties in order to generate a sustainable return on their investments in our group, ”said François Cornelis, Chairman of Bpost.