Car & General quadruples dividend on profit jump

Car & General quadruples dividend on profit jump

Diversified trading group Car & General #ticker:CGEN is quadrupling its dividend payout to Sh3.2 per share besides proposing a one-for-one bonus share after posting strong results for the year ended September.

The company had paid a dividend of Sh0.8 per share for the prior year. The new proposed distribution will be made on March 24 to shareholders on record as of February 25.

C&G more than tripled its net income to Sh887.2 million as revenue surged 41.4 percent to Sh17.1 billion.

“Given the positive performance this year, the directors recommend a dividend of Sh128.3 million (Sh3.2 per share) in respect of the year,” the Nairobi Securities Exchange-listed firm said in a statement.

“The directors further recommend the issuance of bonus shares of one new fully paid-up bonus share … for every one ordinary share to be issued to the shareholders registered on the company’s register at the close of business on March 24, 2022.”

Subject to approval of shareholders and regulators, the bonus shares will be credited on April 8. The bonus shares will, however, not be entitled to the new dividend.

C&G says its business performed well across the board, with rising demand for its brands of motorcycles and tuk-tuks while its lending arm Watu Credit also registered significant growth.

“Overall, sales in Kenya grew 55 percent and sales outside Kenya grew 22 percent. Uganda and Tanzania now represents over 35 percent of Group sales. Our two-wheeler and three-wheeler businesses experienced reasonable growth,” the company said.

“Our equipment businesses (namely tractors, construction equipment and forklifts) also grew particularly Doosan.”

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