Bolloré Africa Logistics Côte d'Ivoire plans to distribute a gross dividend of CFA5.4 billion to its shareholders for the fiscal year 2019.

This proposal is one of the resolutions that will be submitted to the vote of shareholders at the General Meeting scheduled for November 17, 2020. And since a single group (Bolloré) directly and indirectly controls more than 70% of the company's capital, the proposal will likely receive the green light.

The decision should also appeal to those who hold the remaining 20.08% of the company, according to market data. They will share a gross dividend of just over CFA1.88 billion, which is a good deal.

On the regional stock exchange BRVM, Bolloré Africa Logistics CI’s shares were down 17% as of November 2 since the beginning of 2020. The company also has reserves. Despite this distribution of dividends, its carry forward is again a little over CFA9 billion.

However, while in 2019 the net profit was down for the second consecutive year since 2017, the year 2020 does not look any better; and the distribution of dividends will only put extra pressure on the company.

With the coronavirus, the segment of the business that depends on the air transport sector has taken a hit due to the travel restrictions imposed by the pandemic. The new lockdown that is taking place in several of Côte d'Ivoire's partner countries is not helping at all.

Net income by the end of September 2020 was CFA10.7 billion, up 1.5% compared to the same period in 2019. However, this net margin was sustained by the dividends received from subsidiaries. Upstream of the income statement, revenues amounted to CFA61.2 billion, down 5.8% compared to the same period in 2019.

Idriss Linge