The Founder Of Zara Will Receive A Dividend Of 1 Billion 620 Million Euros This Year.

Amancio Ortega, the founder and largest shareholder of Inditex, has obtained a dividend of more than 813 million euros from its Zara group.

In May 2nd, shareholders such as Amancio Ortega received a dividend of 0.44 euros per share, which is the first dividend of Inditex shareholders this year.

On the whole, the Spanish fashion tycoon Amancio Ortega will get 1 billion 620 million euros (12 billion 290 million yuan, 7.58) from the dividend of Inditex this year, which is nearly 300 million euros more than in 2018.

According to the announcement of the company in early May, the board proposed that the new dividend policy be agreed again in July next year.

This year's dividend will be increased to 0.88 euros.

(0.88 euros per share: ordinary dividend 0.66 Euro + special dividend 0.22 Euro).

However, the growth of Zara parent Inditex group's performance has slowed down significantly. From the 2016 fiscal year, the profitability of Inditex group has been shrinking, and the huge entity shop has become the biggest burden.

In December 2017, the Inditex group suddenly announced that it had signed a leaseback agreement with 16 buyers from Spain and Portugal, with a total paction volume of about $472 million and began to slow down the pace of opening stores.

In March this year, Inditex group's 2018 report showed that annual sales increased by only 3% to 26 billion 100 million euros, and net profit rose 12% to 3 billion 400 million euros.

Inditex reported a 27% increase in the reporting period.

In the 2019 fiscal year, the Group expects sales growth to remain 4%-6%, and continue to increase investment on line, while introducing more advanced logistics systems.

Inditex's overall network sales account for 12% of total sales, while the average sales in the US account for 27%, and consumers' desire for new clothes may be weakening.

More interesting is that the Royal Bank of Canada (RBC) released a report earlier this month, which raised the target price of Inditex shares from 30 euros to 31 euros per share, which means that it may be reassessed on the basis of 17%.

The move was strongly opposed by the market. Morgan Stanley analysts stressed in a market report that the Inditex group has extended the life of its assets and increased the cost of capitalized information technology.

In addition, analysts at the US bank point out that Inditex's profits outside Europe are less than 20%, and three of the five major global apparel markets have very low margins.

As of 2 days, Inditex shares had risen 18%.

According to the FactSheet data, the related profit forecast has dropped by 1.6%.

The founder Amancio Ortega has a stake of 59.294%, equivalent to 1 billion 848 million shares, and is the largest shareholder of Inditex.

In the 2017 fiscal year, the Group paid a dividend of more than 2 billion 300 million euros, of which the average dividend of 0.375 euros per share was paid in May 2018. In November 2nd, the ordinary dividend of 0.165 euros per share and the special dividend of 0.210 euros per share and the final dividend of 0.375 euros per share were also issued.

In 2017, Amancio Ortega, which owns 59.294% of Inditex group, received a dividend of 1 billion 386 million euros, which was 1 billion 256 million euros in fiscal year 2016, an increase of 10.4%.

Author: Sun Huahua