Title :

Dividend Distribution Policy

Content :

Dividend Distribution Policy (In accordance with MSX Circular No. 3/2025)

1.    Board Approval

This Dividend Distribution Policy ("Policy") has been approved by the Board of Directors of National Biscuit Industries Limited SAOG ("the Company"), a company listed on the Muscat Stock Exchange (MSX).

The Policy establishes the principles and framework governing the distribution of dividends to the Company's shareholders and reflects the Company's commitment to transparency, consistency, and sustainable shareholder returns.

2.    Dividend Distribution Period

The Company generally evaluates dividend distributions on an annual basis following the approval of the audited financial statements and subject to shareholder approval at the Annual General Meeting (AGM).

3.    Forms of Dividend Distribution

Subject to applicable laws and regulations, dividends may be distributed in one or more of the following forms:

• Cash dividends;
• Bonus shares;
• A combination of cash dividends and bonus shares; or
• Any other form of distribution permitted under applicable laws and regulations.

 

4.    Financial Considerations & Distribution Framework

The Board of Directors shall consider the Company's financial position and performance before recommending any dividend distribution. The Company does not maintain a fixed dividend payout ratio.

Dividend recommendations will be determined annually based on

·        Profitability, financial performance and earnings retained;

• Availability of distributable reserves and accumulated profits;
• Availability of Cash & Bank Balance;
• Working capital requirements;
• Capital expenditure plans and future investment opportunities;
• Debt servicing obligations and financing arrangements;
• Regulatory and statutory reserve requirements;
• Economic and market conditions;
• Strategic business objectives; and
• The overall financial position of the Company.
• Any other factors deemed relevant by the Board.

Dividends shall only be distributed from realized and distributable profits net of debt servicing and capital commitments in accordance with applicable laws and regulations.

Accordingly, dividend distributions may vary from year to year depending on prevailing business and economic conditions.

5.    Growth and Sustainability Strategy

The Company seeks to maintain an appropriate balance between rewarding shareholders and retaining sufficient earnings to:

• Support business operations;
• Fund future expansion and modernization initiatives;
• Enhance manufacturing capabilities and operational efficiencies;
• Maintain financial stability; and
• Create long-term shareholder value.

 

6.    Industry Outlook

National Biscuit Industries Limited SAOG operates in the food manufacturing sector, specializing in the production and marketing of biscuits, wafers, snacks, and related food products.

The Company's performance is influenced by factors including consumer demand, raw material costs, supply chain dynamics, market competition, and economic conditions within Oman and export markets.

The Company remains focused on strengthening its market position through product innovation, operational excellence, brand development, and expansion into new markets while maintaining sustainable profitability.

 

7.    Disclosure of Dividend Announcements

All dividend-related announcements shall be disclosed through:

• The official disclosure platform of the Muscat Stock Exchange (MSX); and
• By publishing the AGM agenda (which includes dividend proposal) in newspaper 

in accordance with applicable regulatory requirements and prescribed timelines.

 

8.    Dividend Approval Process

Any proposed dividend distribution shall:

1. Be recommended by the Board of Directors; and
2. Be approved by shareholders at the Annual General Meeting,

in accordance with applicable laws and regulatory requirements.

9.    Policy Rationale

The Company adopts a prudent and balanced dividend policy designed to:

• Provide sustainable returns to shareholders;
• Preserve adequate capital for future growth;
• Support operational and strategic requirements; and
• Maintain financial resilience during periods of market volatility.

While the Company aims to provide regular returns to shareholders, dividend decisions will always remain subject to the Company's financial performance and business requirements.

10.                   Legal and Regulatory Compliance

This Policy shall be governed by:

• The Commercial Companies Law of the Sultanate of Oman;
• Regulations issued by the Financial Services Authority (FSA);
• Muscat Stock Exchange (MSX) requirements; and
• Any other applicable laws, regulations, directives, or circulars issued by relevant regulatory authorities.

11.                   Review and Amendment

The Board of Directors reserves the right to review, amend, or update this Policy from time to time to reflect:

• Changes in regulatory requirements;
• Market developments;
• Changes in the Company's financial position; or
• Strategic business considerations.

Any amendments shall be disclosed in accordance with applicable regulatory requirements.

12.                   Disclaimer

This Policy is intended to provide guidance regarding the Company's approach to dividend distribution and does not constitute a guarantee or commitment to declare or pay dividends in any particular year.

Dividend declarations remain subject to:

• The Company's financial performance;
• Availability of distributable profits;
• Liquidity and cash flow requirements;
• Board recommendation; and
• Shareholder approval,
• as required under applicable laws and regulations.

13.                   Investor Relations Contact

For further information regarding this Policy, shareholders may contact the Company's Investor Relations Department through the Company's official website.