WITTCHEN SA has decided to update its dividend policy in connection with the recently announced intention to repurchase treasury shares and the planned acquisition of new financing. The Management Board’s priorities are debt restructuring and improving profitability. The company intends to allocate generated profits, among other purposes, to a development program that includes the expansion of its logistics center.
“The challenging market environment in the retail sector means that further development of the WITTCHEN Group depends primarily on investments that increase operational efficiency and help reduce costs in the future. This year, the expansion of the Group’s logistics center in Palmiry—where our company headquarters is also located—will begin. At the same time, we are focusing on improving sales efficiency in both online and offline channels. We also see a need to restructure our debt. We are currently in advanced talks with one of the banks regarding new financing, which will allow us to refinance existing debt, carry out planned investments, and conduct a share buyback. The terms of this financing involve certain restrictions on dividend payments,” said Jędrzej Wittchen, President of the Management Board of the WITTCHEN Group.
The Management Board’s decision means a change to the company’s dividend policy for the years 2025–2027. During this period, the Board will not recommend to the General Meeting of Shareholders that profits generated in those years be allocated to dividend payments. After this period, the Board will reassess the dividend policy and evaluate the possibility of returning to distributing all or part of the company’s profits to shareholders in the form of dividends.
The final decision on the allocation of profits is made by the General Meeting of Shareholders when approving the financial statements for a given financial year.
