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05 April 02:05 AM

Dividend Distribution Policy

Oman Flour Mills OFMI 15.16% 0.52 0.07

Title :

Dividend Policy

Content :

Dividend Policy (Version 1.0)

1. Board Approval

This Dividend Distribution Policy (the “Policy”) has been approved by the Board of Directors of Oman Flour Mills Company SAOG, a company listed on the Muscat Stock Exchange, at its meeting held on 25 February 2026. This Policy sets out the principles and framework governing the distribution of dividends to the Company’s shareholders.

2. Purpose

This Policy aims to ensure transparency, regulatory compliance, and clarity regarding the Company’s approach to dividend distribution, in accordance with the applicable laws and regulations in the Sultanate of Oman and the requirements of the Muscat Stock Exchange.

3. Timeframe

Dividends are generally determined on an annual basis following the approval of the Company’s audited financial statements.

4. Dividend Distribution Strategy

Dividends may be distributed in one or more of the following forms: cash dividends, bonus shares, or a combination of cash dividends and bonus shares.

5. Company’s Financial Position

Dividend distributions are determined based on the Company’s financial performance and financial position. In assessing dividends, the Board of Directors will consider factors including, but not limited to:

  • Net profit and retained earnings
  • Availability of distributable profits
  • Liquidity position and cash flow requirements
  • Capital expenditure plans and future investment requirements
  • Debt obligations and financing arrangements
  • Regulatory requirements and statutory reserve obligations
  • Prevailing economic and market conditions

Dividends shall be distributed from realized and distributable profits in accordance with the provisions of the Commercial Companies Law and retained earnings.

6. Growth Strategy

The Company aims to maintain a balanced approach between distributing returns to shareholders and retaining sufficient earnings to support operational requirements, future growth, strategic investments, and financial stability.

7. Industry Update

Oman Flour Mills Company SAOG operates within Oman’s food manufacturing and agri-supply sector, supporting national food security through activities including flour and feed milling, pre-mix production, grain trading, bakery operations, poultry production, and dairy beverages. The sector is influenced by global commodity price movements, supply chain dynamics, and domestic demand linked to food security initiatives. The Company continues to focus on operational efficiency and supply chain stability while pursuing strategic expansion into areas such as Total Mixed Ration (TMR) feed and aqua feed production to support livestock and aquaculture development in the Sultanate.

8. Dividend Distribution Plan

The Company will disclose key information relating to any proposed dividend distribution including the type of dividend, dividend amount or percentage, entitlement date, and payment date in accordance with applicable regulatory timelines. The Company does not maintain a fixed dividend payout ratio and dividend distributions may vary from year to year depending on the Company’s financial performance, liquidity position, and strategic considerations, allowing the Company to balance rewarding shareholders with reinvesting in strategic expansions and long-term sustainability.

9. Dividend Announcement Placement Plan

Dividend announcements shall be disclosed through the official disclosure platform of the Muscat Stock Exchange and through the Company’s official website in accordance with applicable regulatory requirements.

10. Dividend Approval

Dividend distributions are proposed by management and recommended by the Board of Directors based on the Company’s financial performance and financial position. Any proposed dividend distribution is subject to approval by shareholders at the Annual General Meeting in accordance with applicable laws and regulatory requirements.

11. Policy Rationale

The Company adopts a balanced dividend policy aimed at providing sustainable returns to shareholders while maintaining adequate capital to support operational requirements, financial stability, and long-term growth. To account for fluctuations in commodity prices and the cyclical nature of financial performance, the company recommends an annual dividend payment, ensuring stability and sustainability in returns to shareholders.

12. Legal Clause

This policy is governed by the provisions of the Commercial Companies Law of the Sultanate of Oman and any applicable regulations issued by the Financial Services Authority and Muscat Stock Exchange, and any laws, regulations, instructions, or circulars issued by the relevant regulatory authorities.

13. Amendment

The Company reserves the right to review and amend this policy from time to time in response to regulatory developments, market conditions, or changes in the Company’s strategic or financial position. Any amendments will be disclosed in accordance with applicable disclosure requirements.

14. Disclaimer

This policy serves as a guiding framework for dividend distribution and does not constitute a commitment or guarantee regarding future dividend payments. Dividend distribution decisions are subject to a range of criteria and factors, including, but not limited to, net profit and retained earnings, availability of distributable profits, and the Company’s liquidity position and cash flow requirements. Such distributions are subject to the recommendation of the Board of Directors and the approval of shareholders at the General Meeting, in accordance with applicable laws and regulations.

15. Contact Information

 

For further information regarding this policy, shareholders may contact the Investor Relations function of Oman Flour Mills Company SAOG through the Company’s official website or communication channels below.

OFMI-29032026-29

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