BERLIN, March 8 (Reuters) - German pharamceuticals company Stada is cutting its dividend to instead use the money for investments to grow its business and improve its position in the market.
The company, now controlled by private equity firms Bain and Cinven, said it would propose a dividend of 0.11 euros ($0.14) per share for 2017, down from 0.72 euros the previous year. It would then carry forward the remaining 54 million euros in profits.
“In order to withstand the competition in the pharmaceuticals market, Stada must be able to invest in R&D, new products, technologies and markets,” the company said in a statement on Thursday.
The proposal is subject to approval at its annual meeting.
It also published 2017 results, with sales up 8 percent, but with reported EBITDA up just 1 percent to 363.8 million euros due to costs involved with the takeover by Bain and Cinven. Adjusted EBITDA rose 9 percent to 433.9 million euros and it said it expects an increase to around 480 million euros, with a 5 percent margin either side of that number, for 2018. ($1 = 0.8070 euros) (Reporting by Victoria Bryan Editing by Edward Taylor)