Due to the appearance of the coronavirus pandemic and its difficult to predict consequences for the Polish and global economy, the Management Board of Eurocash Group intends to recommend to the Ordinary General Meeting of the Company to resign from the payment of dividends for 2019 and to allocate the entire profit to reserve capital.
- The financial situation of Eurocash Group is comfortable. A month ago, during the difficult times of the pandemic, we negotiated an agreement with a consortium of banks for a 3-year revolving loan of PLN 600 million. We also obtained EUR 50 million of financing from the EBRD. We continue investing in new technologies, expanding the eurocash.pl platform and loyalty programmes. At the end of June we purchased 56% of Frisco shares. The decision to allocate to 100% of the total unit profit for 2019 results only from the unstable macroeconomic situation. By increasing the equity we are increasing the financial security of the Company," said Jacek Owczarek, Member of the Management Board of Eurocash Group.
The change in the Eurocash Group's dividend policy is of a one-off nature and applies only to the payment of dividends from net profit for 2019.
The General Meeting of Shareholders of the Eurocash Group is scheduled for 25 August 2020.
16 thousand independent shops in Eurocash Group
Eurocash Group is the largest Polish company dealing with wholesale distribution of fast moving food products, household chemistry, alcohols and tobacco products as well as marketing support for independent Polish entrepreneurs conducting retail operations. Franchise and partner chains supported by Eurocash bring together about 16 thousand independent shops operating under such brands as abc, Groszek, Delikatesy Centrum, Lewiatan, Euro Sklep, Gama, Duży Ben and Kontigo. In order to achieve a scale appropriate to ensure the competitiveness of its customers, Eurocash Group is also developing its own retail chain.