MaltaPost increases dividend by 20% following record profits

The MSE Equity Price Index recovered some of yesterday’s losses as it rebounded by 1.1% to 3,748.966 points as the gains in Hili Properties, Harvest, HSBC, MIA and Farsons outweighed the decline in BOV. Meanwhile two other equities closed unchanged as today’s trading activity in local equities amounted to €0.1 million. Download today’s Equity Market Summary.

MaltaPost plc closed unchanged at the €0.48 level across five deals amounting to 17,558 shares. Yesterday evening, MaltaPost plc published its Annual Report and Financial Statements for the financial year ended 30 September 2024. Revenues increased by 1.3% to €40.1 million while operating costs (excluding depreciation) decreased by 4.9% to €33.4 million, as the decrease in foreign direct mail costs to €10.7 million (FY2022/23: €14.9 million) outweighed the rise in employee costs to €17.1 million from €15.1 million in the previous financial year. Depreciation and amortisation expenses surged by 26.2% to €2.49 million (FY2023/24: €1.97 million). Consequently, operating profit amounted to €4.53 million compared to the €2.63 million figure in the previous financial year, which translates into a higher EBIT margin of 11.3% compared to 6.6% in FY2022/23. Overall, MaltaPost doubled its pre-tax profit to €4.68 million (FY2022/23: €2.32 million). After accounting for a tax charge of €1.71 million and profits to non-controlling interests of €0.07 million, the net profit attributable to MaltaPost’s shareholders amounted to a record €2.90 million compared to €1.85 million in the previous financial year, which translates into a return on equity of 9.55% (FY2022/23: 6.66%). The Directors increased the final net dividend for the first time since MaltaPost’s IPO in 2008 to €0.024 per share which is 20% higher than the €0.02 dividend attributable to the previous financial year. Nonetheless, in view of the higher level of profits, the payout ratio of 63% is lower than the level of 83% of the last financial year. The dividend will be paid on Thursday 20 March 2025 to all shareholders as at close of trading on Friday 17 January 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 20 February 2025.

APS Bank plc traded flat at the €0.56 level as 15,774 shares changed hands.

Simonds Farsons Cisk plc gained 1.5% to the €6.60 level on a single trade of 684 shares.

Also among large companies by market value, HSBC Bank Malta plc surged by 8.3% to the €1.44 level across four deals amounting to 10,350 shares.

Hili Properties plc moved 0.9% higher to the €0.22 level on two trades totalling 222,850 shares.

Harvest Technology plc rose by 7.6% to the €0.915 level on one deal of 2,375 shares.

Malta International Airport plc increased by 1.8% to the €5.80 level over trivial volumes.

On the other hand, Bank of Valletta plc shed 0.6% to the €1.70 level over six trades amounting to 8,988 shares.

The RF MGS Index remained relatively unchanged at 917.583 points as the gains in short term MGS prices were offset by the declines in long-term MGS prices, implying a steepening of the yield curve. The economy in the US remained resilient in the third quarter of 2024 as it grew by 3.3% year-over-year. Meanwhile, data released today showed that the month-over-month increase in both personal income and spending were slightly less than forecasted in November. Furthermore, month-over-month personal consumption prices increased by 0.1%, which was less than projected. Particularly, core personal consumption price figures grew by the lowest figure in the last six months.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.