C W Mackie pays out impressive dividend in 2020/21

C W Mackie PLC, a highly diversified publicly listed trading company in the country, has paid a first and final dividend of Rs.7 per share (dividend payout 89 percent), amounting to Rs.251.92 million, out of the profits for the year ended on March 31, 2021.

It was approved by the shareholders at the virtual Annual General Meeting held recently.

The company, amidst numerous business disruptions and challenges by the COVID-19 pandemic, recorded an impressive profit for the period ended on March 31, 2021, which after charging income tax expense of Rs.120.8 million, was Rs.284.5 million. This is one of the best financial performances posted by the group in recent years, primarily due to the outstanding contributions made by the fast-moving consumer goods cluster and industrial product cluster (IPC). 

The performance of the IPC, which comprises light industrial products, electrodes, refrigeration and air-conditioning components and marine paints, has been of great promise during the reporting period. The IPC, one of the fastest-growing business clusters in the group, contributed more than one-third of the company’s earnings before interest and tax. 

As further elaborated in the chairman/chief executive officer’s review of the annual report 2020/21, the management of the IPC is highly optimistic of the future business potential of this cluster, in the backdrop of the mega constructions projects and other associated construction activities forecast by the Government of Sri Lanka, in particular, the much-publicised the Colombo Port City developments. The company forecasts the profit contribution from the IPC to increase significantly in the foreseeable future. 

C W Mackie PLC has been paying a steady dividend in recent years. The current market price per share is Rs.57.50 and the market capitalisation of the company as of end-October 2021 was Rs.2.1 billion.