The Slovenia Times

Repeat Krka AGM Endorses Counter Proposals on Dividend


The EUR 81m payout was proposed by the Slovenian Sovereign Holding (SSH) and the Pension Fund Management (KAD), the biggest single owners holding 16.20% and 10.65%, respectively.

The management and the supervisory board had proposed a dividend of EUR 2.20 gross per share in a total dividend payout of EUR 71.6m.

Even higher dividend, of EUR 3.35 per share, was proposed by an association representing small shareholders. Nevertheless, their representative was satisfied with the outcome.

The shareholders also appointed a new supervisory board after the terms of the incumbent one expired in June.

Instead of Sergeja Slapničar nominated by the management and the supervisory board, the meeting backed Simona Razvornik Škofič from the SSH at the proposal of both state-run owners.

The other members to be appointed to the supervisory board are Julijana Kristl, Jože Mermal, Matej Pirc, Andrej Slapar and Anja Strojin Štampar.

The shareholders meeting in June backed a dividend payout of EUR 2.20 per share and the new supervisory board including Slapničar, but the decisions were annulled because the meeting was called a day too late.

Krka generated EUR 599.9m in sales revenue in the first half of the year, EUR 0.5m more than in the same period last year, while volume sales rose by 5.2%.

Krka's operations have been affected by the fall in the Russian currency, which was down 26% from last year. Sales in the market were up 13% in roubles, but down 15% in euros.

As the Russian currency has been falling again recently, Krka had secured itself against the risk with currency futures in the third quarter, Krka chairman Jože Colarič told the general meeting.

While the company is due to present its operating results to reporters next week, Colarič told the press after the meeting that half-year sales were boosted in their West European markets.

Commenting on a rumour the owners were allegedly unhappy with him as chairman, he said it was an invention by a media outlet, adding the management had been assured by the owners of their support.

Colarič argued that Krka's half-year results were good, with sales above those in the same period last year. He also said that he had been given a new-six-year term at the helm of the company this year.


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