Kernel approves dividend of USD 0.25 per share

Ukrainian sunflower oil producer Kernel (KER PW) announced that its annual general shareholders meeting on Dec. 12 approved a dividend of USD 0.25 per share (implying dividend yield of 1.6%). With 80.7 mln shares outstanding, the total sum of dividends to be disbursed amounts to USD 20.2 mln. Recall, Kernel reported in late October record-high net income of USD 225 mln (more than doubled yoy) in FY2016 ended in June 30.

Igor Zholonkivskyi: FY2016 dividends are the same as in the two previous years, while the dividend payout ratio dropped to 8.2% in 2016, compared to 17.7% in the previous year. We did not expect a dividend hike despite the record net income reported in FY2016, as the operating cash flow before working capital changes remained mostly flat yoy in FY2016. We maintain our bullish view on Kernel stock.