Paper and pulp producer Sappi has paid a dividend for the first time since 2008 after nearly doubling its full-year net profit while further reducing its net debt. The mid-cap company declared a dividend of 11 US cents per share as net profit jumped 91% to $319m in the year to September. Excluding special items, earnings per share rose 68% to 57c. Net debt, which has kept the lid on the share price for some time, according to analysts, dropped 20% to $1.40bn as a result of cash generation, which stood at $359m from $145m Cash generation included proceeds from the sale of Cape Kraft and Enstra mills for $39m. "The continued success of our strategy implementation and the benefits of a weaker rand-dollar exchange rate delivered further significant gains in earnings," CE Steve Binnie said in a statement. "Ongoing projects to improve our cost position and enhance our competitiveness in graphic paper ensured an improved operating performance." The stock was up 3% to R76.70 in midmorning t...
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