Marimekko Corporation, Inside Information 18 February 2021 at 7.45 a.m.
Marimekko’s Board of Directors has decided that a dividend of EUR 0.90 per share will be paid for 2019, and proposes that the AGM authorize the Board to decide on a maximum dividend of EUR 1.00 per share for 2020 at a later stage
Pursuant to the authorization granted by the 2020 Annual General Meeting, the Board of Directors of Marimekko has decided that a dividend of EUR 0.90 per share be paid for the financial year 1 January–31 December 2019. The dividend will be paid in one instalment to shareholders who are registered on the dividend payout record date of 22 February 2021 in the company’s Shareholder Register held by Euroclear Finland Ltd on behalf of the Board of Directors of Marimekko Corporation. The dividend payout date is 1 March 2021.
At the same time, the Board decided to propose that the AGM on 14 April 2021 authorize the Board to decide on the payment of the dividend for 2020 at a later stage. The Board’s proposal reflects the uncertainty caused by the coronavirus pandemic in general economic conditions.
”Marimekko’s results for 2019 were among the best in the company’s history. However, only a few months later it was evident that the coronavirus pandemic that spread rapidly all over the world during spring 2020 would heavily impact the fashion industry and specialty retail sector. As a result, Marimekko’s AGM postponed decision on the dividend for 2019 until the effects of the pandemic on the company’s business could be better estimated. Marimekko has a wide Finnish and international shareholder base, which has grown significantly during the past few years. Finnish private investors represent a large part of our over 18,000 shareholders. A steady dividend policy has been our promise to our shareholders, and we want to keep this promise. Marimekko has an excellent equity ratio, its balance sheet is in good shape and there were no extraordinary items in the 2019 result. Therefore, we have now decided to pay a dividend for 2019,” says Mika Ihamuotila, Chairman of the Board of Marimekko.
”Nevertheless, at the same time, the Board decided to propose to the AGM that the payment of a dividend for the year 2020 will be considered at a later stage. While Marimekko managed to successfully navigate through extremely difficult circumstances in 2020, the pandemic affected the company’s operations and result in many ways. Uncertainty in our market areas continues and therefore special caution with dividend payment is justifiable,” Ihamuotila continues.
Dividend for 2019
The AGM on 8 April 2020 authorized the Board of Directors to decide on the payment of a maximum dividend of EUR 0.90 per share in one or several instalments at a later stage. In accordance with the authorization, the Board has today decided that a dividend of EUR 0.90 per share will be paid for 2019.
According to the company’s long-term financial goals, Marimekko intends to pay a yearly dividend, with the percentage of earnings per share allocated to dividends being at least 50%. The dividend to be paid now represent 56% of comparable earnings per share for 2019, which amounted to EUR 1.61. In 2018, comparable earnings per share were EUR 1.15 and the dividend paid for the year was EUR 0.60 per share, equal to 52% of earnings per share. For 2018, an additional dividend of EUR 1.25 per share was also paid related to the capital gain on the sale of the company headquarters.
The Board of Directors of Marimekko estimates that the dividend for 2019 can be paid since, despite the exceptional circumstances caused by the coronavirus pandemic, the company’s financial position is stable. Marimekko’s liquidity is good and, in the view of the Board, the proposed dividend payout does not jeopardize the company’s solvency.
Proposal for the 2020 dividend
Marimekko’s Board of Directors proposes that the AGM on 14 April 2021 authorize the Board to decide on the payment of a maximum dividend of EUR 1.00 per share in one or several instalments at a later stage. The authorization would be valid until the next AGM. The company will publish the possible decision on dividend payment separately and, at the same time, confirm the pertinent record and payment dates.
Tel. +358 40 584 6944
Nasdaq Helsinki Ltd
Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2019, brand sales of the products worldwide amounted to EUR 251 million and the company's net sales were EUR 125 million. Roughly 150 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 450 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com