Tan Tien Packaging Joint Stock Company (Tapack – TTP) recently approved the payment of record-high cash dividends for 2023. Each share will receive 35,000 VND, a significant increase from previous years. The payout ratio is 350%, reflecting the company’s strong financial performance and commitment to shareholder returns.
Despite a 10% decrease in revenue to around 1,734 billion VND, TTP reported a 233% increase in profit after tax to nearly 153 billion VND. The company attributed the decrease in revenue to competition and economic challenges but emphasized that cost reductions and waste control led to strong profit growth.
Tapack has a long history of consistently distributing cash dividends to shareholders. Since 2006, the company has never failed to pay dividends, with rates typically ranging from 2-5%. Tan Tien Packaging, formerly known as Vietnam Plastics Company (Simiplast), is the country’s first soft plastic packaging manufacturer.
With customers including Unilever Vietnam, Pepsico, Ajinomoto, and others, TTP plans to achieve 1,944 billion VND in revenue and 223 billion VND in pre-tax profit this year, representing a 12% and 14% increase respectively from the previous year. On the stock market, TTP shares have seen significant growth, reaching the ceiling price of 124,000 VND per unit after a period of quiet trading.
Tapack’s strong financial performance and commitment to shareholder returns have contributed to its positive standing in the market. Customers were pleased with the news following the company’s report of record profits in 2023. The dividend distribution is scheduled for the end of June, with Tapack planning to spend over 473 billion VND on dividend payments. Major shareholder Dongwon Systems
