UPDATE 1-Belgium's Bpost shares slump on slimmed-down dividend policy

information fournie par Reuters •08/12/2020 à 10:06

(Recasts with share move, adds analyst comment, detail)

Dec 8 (Reuters) - Belgian postal company Bpost BPOST.BR on Tuesday announced a reduced dividend payout target that one brokerage said was below expectations, sending its shares down over 7% in early trading.

As part of a broader strategy update, Belgium's leading postal operator said it would aim to pay out 30% to 50% of net profit according to International Financial Reporting Standards, starting next May.

Until May 2020, Bpost's policy was to distribute 85% of its net result according to Belgian accounting standards. In August, the firm signalled it would pay no dividend on this year's earnings.

Jefferies analysts said the new dividend target was below consensus estimates of around 60%, and forecast a 44 cents per share payout for 2021.

The group also said it would counter tumbling traditional mail volumes by investing more in its parcels and e-commerce logistics activities.

It said it was targeting bolt-on acquisitions for its e-commerce subsidiary, Radial Europe, and that its Dutch e-commerce service Active Ants would open new sites in Europe.

"Only disciplined capital management will well position Bpost group to successfully drive its important transformation journey towards a global omni-commerce player", said Chairman François Cornelis in a statement.

Bpost last month hired 3,000 extra staff and said it would recruit more as needed, as it copes with parcel volumes that have reached record levels during the COVID-19 pandemic.

National lockdowns have pushed consumers online for many products, boosting parcel volumes and revenues for service providers.

(Reporting by Juliette Portala and Sarah Morland; Editing by Kim Coghill and John Stonestreet)