Inditex shareholders ratify 40% higher dividend than the previous year
19 Jul '06
2 min read
The Annual General Meeting of Shareholders of clothing retailer Inditex, held at the headquarters of the Group in Arteixo, has approved the annual accounts for FY2005 and the distribution of income or loss, with the distribution of a dividend of €0.67 per share. This amount is the result of adding an ordinary dividend of €0.52 and a bonus dividend of €0.15.
The approved dividend totals €417,631,000, which represents a 52 percent pay out with regard to the consolidated net income. The dividend will be paid on 21st July 2006 through those entities where shareholders have their shares deposited.
In his presentation to the AGM, Pablo Isla, First Deputy Chairman and CEO, pointed out the good performance of sales in the last fiscal year, as well as the significant number of new jobs created both in Spain and abroad. The strong funds from operations have allowed the Inditex Group to carry out investments for an amount in excess of €800 million. Expected CAPEX for the current fiscal year is between €850 and €950 million.
Isla also highlighted that the expected profitability will allow to keep in the future an attractive and predictable remuneration policy for shareholders.
As for the future growth projects, Isla stated that the European continent as a whole is already a domestic market for Inditex, where all the commercial formats of the group are expanding their presence. Among the European markets with the most potential, the CEO singled out Italy, France, United Kingdom, Germany and Russia. Meanwhile, the Asia-Pacific area consolidates its position as a priority expansion target, with the goal of increasing the selling space at a double rate than the global average of the Group.
Leading fashion distributor Inditex Group with eight sales formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home y Kiddy's Class- boasting 2,895 stores in 64 countries.
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