LPP sees no reasons to change the dividend policy

LPP does not see any reasons to change the dividend policy after the write-off regarding the Russian company, said vice-president Marcin Bójko.

“The write-off is non-cash and does not result in any cash outflows for the company. The company's situation is very comfortable, which can be seen from today's results. We have enough funds for development, investments, including logistics capex,” said vice-president Marcin Bójko during the results teleconference.

“This will result from the analysis of the current situation, but we do not see any indication that anything will change in the dividend policy. We are simply focusing on clean business now,” he added.

After three quarters of the 2025/26 financial year, the LPP group had PLN 783 million in net profit, PLN 3.05 billion in EBITDA and PLN 16.65 billion in revenues. For comparison, a year earlier, revenues amounted to PLN 14.52 billion, EBITDA was PLN 2.97 billion, and net profit was almost PLN 1.3 billion.

After adjusting for the impairment loss on receivables related to the sale of the Russian business (PLN 823 million in the 9-month period), EBITDA amounted to PLN 3.872 billion in the three-quarter period, and the adjusted net profit amounted to PLN 1.655 billion.

LPP does not anticipate further write-offs related to the Russian business.

According to Bójko, the basis for determining the dividend for 2025 will be the net result adjusted for one-off.

LPP's dividend policy assumes the payment of min. 50 percent unit profit and max. 70 percent consolidated net profit.

“In recent years, the dividend was at the maximum level according to our policy, i.e. 70 percent of net profit. Nothing changes here, we will determine it from this angle. We have funds, we are in a comfortable situation, the leverage is 1.1x and is at a very safe level. (Copyright – note by PAP Biznes) in no way affects the potential for dividend payment for this year,” said the CFO.

When asked whether LPP was considering acquisitions in connection with the new financing, he replied: “(…) when it comes to capital allocation, these are investment expenses: logistics and stores, mainly Sinsay brands, and sharing dividends with shareholders. At the moment, we have no M&A ideas.”

He added that the group is focused on developing the Sinsay brand. Currently, there are no plans to expand this brand to Western markets.

As he pointed out, in some countries in the region (Slovakia, the Czech Republic and Hungary) there is an economic slowdown, which affects the pace of Sinsay openings.

In 2025, LPP plans to have 910 new Sinsay stores, in 2026 950, and a year later 1,000 new openings of this brand.

The group's CAPEX is expected to amount to PLN 2.6 billion in 2026, compared to PLN 2.9 billion this year. Investment expenditure in 2027 is expected to amount to PLN 2.35 billion. (PAP Business)

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