Novaturas announces audited results, priorities for this year include improving customer experience and transforming the organisation - Seite 2

Proposing not to pay dividends 

When announcing its audited annual report, Novaturas Group has submitted a proposal to withhold dividends for 2023. According to the management of the company, the main reason for this is the current credit terms with the bank. These stipulate that the bank consent is required for the payment of dividends. Despite a profitable year, the bank lending to Novaturas is currently reluctant to approve the payment of dividends, given the current situation in the outbound tourism market and the more difficult last two quarters.

Gediminas Almantas, Chairman of the Board of Novaturas Group, says that the company is continuing negotiations with the bank on the amendment of the credit terms and the payment of dividends. “The aim is to base the terms primarily on the structure of the company’s balance sheet and to enable Novaturas to pay dividends to shareholders in the future, in line with the dividend policy of the company. If new terms are agreed, the payment of dividends and more specific time periods will also be reconsidered,” comments Gediminas Almantas.

At the same time, the management of Novaturas emphasizes that when distributing company’s profit, consideration should be given to increase its financial capacity, ensuring the balance of  working capital funds, and investing in organizational transformation processes, including the improvement of customer experience, strategic partnerships, and the organizationall structure. Novaturas will focus on projects that could enhance the competitiveness of the company, its revenue and profitability, and thus the long-term return to shareholders.

The final decision on the matter of dividends will be taken by the shareholders at the General Meeting of Shareholders scheduled for the second half of May.

About the company 
Novaturas Group is the largest and the only charter flights‘ local tour operator in the Baltic States, offering summer and winter trips to more than 30 destinations worldwide and more than 100 tours. Based on audited data, in 2023 Novaturas Group recorded revenues of EUR 208,3 million and served 259 000 passengers in Lithuania, Latvia and Estonia.    

Vygantas Reifonas   
CFO of AB Novaturas   
[phone]