Sintez Could Put 99.98% of 2018 Net Income in Development


The board of directors of the Kurgan-based pharmaceutical company Sintez has urged shareholders ahead of an annual shareholder meeting scheduled for June 28, to keep nearly all of the 2018 net income undistributed.

The board of directors proposed that only 176,234 rubles of the 909,773 million-ruble net income to Russian Accounting Standards earned in 2018 be used to pay dividends on preferred shares – 2 rubles per 1-ruble share, and that no dividends be designated on common shares, the company said in a statement.

It recommended that 99.98% of the net income for 2018 should be kept undistributed and be invested in development and working capital financing.

Last year, the company only paid out dividends on preferred shares – 2 rubles per share, and kept more than 1 billion rubles in net income for 2017 undistributed.

Sintez shareholders will gather on June 28 to confirm the accounting balance sheet and report for 2018, to decide on the distribution of profits and losses, to elect a new board of directors and audit commission, and to confirm a nomination for auditor (presumably JSC PricewaterhouseCoopers Audit).

The list of shareholders eligible to participate will be based on the register as of June 7.

The company’s charter capital of 352,469 rubles is split into 88,117 preferred and 264,352 common shares with a par value of 1 ruble.

Sintez makes over 300 finished dosage forms and medical devices.

The company’s net income to Russian Accounting Standards fell 14.2% in 2018 versus 2017 to 909.8 million rubles, earlier reports said.

NacImBio holds a 32.3858% stake in the company, Pharmaceutical Bureau LLC 33.4602% and JSC Marathon Pharma 13.0508%, according to the list of affiliated parties as of March 31 2019.

Marathon Group LLC (the Marathon Group brand) was formed in 2017 to invest in pharmaceutical, infrastructure and agricultural projects, and to build up on these projects.
NacImBio (National Immunobiological Company integrated with Rostec) is a supplier of pharmaceutical products and medical devices. Rostec and Marathon Group earlier agreed to combine pharmaceutical assets on the basis of NacImBio and to form a major manufacturer and supplier of pharmaceutical products.