Safran Shares Rise After Dividend Hike

By Nina Kienle

Safran shares rose after the company said it would raise its dividend payment after posting 2023 results boosted by strong demand.

AT 0955 GMT on Thursday, shares were up 3.3% at EUR181.70. The stock is up almost 15% since the year began.

The French aerospace-industry supplier said it would propose a dividend of EUR2.20 a share, a 63% increase over the EUR1.35 a share it paid in 2022, at its shareholders' meeting on May 23. It comes after the company's strong full-year results, driven by the aerospace propulsion division.

"We remain committed to our capital allocation strategy by deploying our strong balance sheet towards organic investment, targeted mergers and acquisitions, share buybacks and 2023 dividend distribution at EUR2.20 per share," said Chief Executive Olivier Andries.

Safran posted adjusted recurring operating income--its preferred measure of profitability--of EUR3.17 billion, up 31.5%, and an adjusted net profit amounting to EUR2.03 billion, up 72% on year. The group posted adjusted revenue of EUR23.20 billion, up 23.6% organically.

For 2024, Safran expects adjusted revenue of about EUR27.4 billion, 3% ahead of Visible Alpha consensus, and adjusted recurring operating income close to EUR4 billion, 2% above consensus, Berenberg analysts said in a research note.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

February 15, 2024 05:12 ET (10:12 GMT)

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