Ordinary General Meeting of Jumbo Shareholders
Unprecedented conditions, need for a new strategy, same philosophy
The Annual General Meeting of shareholders of the JUMBO Group was held today, June 15, 2021, with an increased participation and representation of approximately 80% of the share capital.
During the General Meeting, the management of the Group, as its regular practice, informed the shareholders-partners regarding the situation as stands today and the trends in the Greek and international market.
2020, has been described as a "lost year" due to the unprecedented global health crisis.
The management of the company, wanting to reciprocate to the shareholders-partners the trust they have demonstrated and are still demonstrating to the Group, pre-paid an increased dividend for the year 2020, compared to the dividend paid for the 12-months- financial year that ended at 30.06.2019.
The total amount of 0,615 EUR per share was paid to the shareholders, in the form of extraordinary cash distribution using the Group’s very good financial position, resulted from the sound management of its financial results, to support its shareholders- partners.
The supply chain has been disrupted violently.
Balances of years are overturned, creating the estimate that - if there is no spectacular change – 2021 and possibly 2022, will also prove to be "lost years".
The increase in the price of raw materials was pointed out as one of the many parameters of the turmoil of the markets.
It is a fact that the analysis of the Central Banks considers this market arrhythmia to be "temporary".
On the other hand, the feeling from the micro-economic, day-to-day business perspective is that the prices will probably stabilize at some point, but at higher than today levels.
In addition, transportation costs have increased dramatically. Today, the shipping cost of a container has reached USD 12.000, a price multiple times higher than last year. It is estimated that the new balance that will be formed will continue to be significantly higher than the levels before the outbreak of the health crisis.
The action plan
The management of the Jumbo Group, taking the above parameters seriously under consideration, is re-evaluating its purchasing plan for the upcoming months as well as the roll out plan of the new stores, at least until the first signs of de-escalation of the crisis in the supply chain appears.
Today, the Group operates 80 stores. 52 are located in Greece, 5 in Cyprus, 9 in Bulgaria and 14 in Romania.
Until October 2021, the new owned store in Craiova, Romania will operate with the warehouse facilities (approximately 24.500 sqm). The launch of the e-shop in Romania and of one more physical store in Greece, are postponed for 2022.
Although there was initially the expectation that normality would return in 2021, the progress does not currently confirm the expectation.
Nevertheless, the company's management remains faithful to its policy, to distribute dividend every year. JUMBO shareholders receive the dividend even in the most difficult economic circumstances.
For 2021, as has been previously announced, the Group will proceed again to an advance payment for the current year’s dividend.
- This is equivalent to a gross amount of 0,47 EUR per share, i.e. it is exactly equal to the dividend distributed for the 12-month financial year ended at June 30, 2019.
The payment of the dividend for the year 2021, i.e. the amount of 0,47 EUR per share will be paid to the shareholders of the Group, until the end of July again in the form of extraordinary cash distribution.