BERLIN (dpa-AFX) - The radiation and medical technology group Eckert & Ziegler intends to cut its dividend almost completely in favor of growth projects. For 2023, despite a net profit of €26.3 million, only 5 cents dividend per share will be paid, as the company surprisingly announced on Tuesday evening on the basis of preliminary figures. The market was expecting 50 cents. Eckert & Ziegler had distributed this amount to shareholders in the previous year.

According to the company, it intends to use the remaining liquidity to finance "new high-yield projects in the continuously growing market for radiopharmaceuticals". This includes, above all, the expansion of production capacities, it said. The dividend cut is also intended to ensure greater independence from external financing.

The cut was not well received on the stock market. The shares of the isotope specialist fell by almost five percent in early trading. However, the share was able to recover the losses over the course of the day. In the morning, the share price is at the level of the previous day's close.

For analyst Alexander Galitsa from Hauck & Aufhäuser, the reduced dividend is more of a safety measure than a necessity. Despite the peaks in growth investments, the company's balance sheet is still strong enough to enable a higher dividend.

Meanwhile, the company is targeting further sales growth for 2024. Following an increase in revenue of eleven percent to a good EUR 246 million in 2023, revenue of EUR 265 million is expected to be achieved in the new year. Adjusted for special effects, earnings before interest and taxes (EBIT) from continuing operations are expected to reach around 50 million euros. In 2023, this figure was 46.9 million euros. The company plans to publish the detailed annual financial statements for 2023 on March 22.

In addition to the reduced dividend, shareholders will also receive one Pentixapharm share for each Eckert & Ziegler share in their securities account as part of the planned spin-off of Pentixapharm AG. Eckert & Ziegler announced a spin-off in the fall. The SDax-listed company intends to focus on its core competencies in order to further expand its position as a leading supplier of radioisotopes for the production of radiopharmaceuticals./mne/mis/nas/jha/