Two key indicators are assessed to shape Borussia Dortmund’s dividend policy.
On the one hand, Borussia Dortmund assesses its earnings situation, and in previous financial years it generated a net loss due to COVID-19 whereas in the financial years before the pandemic it generated a net profit. In the current financial year, Borussia Dortmund will once again report a net profit for the year now that the pandemic has waned. On the other hand, free cash flow is used to ensure that cash flows from operating activities are sufficient to cover investments.
In order to remain competitive, Borussia Dortmund intends to use its net income for the year and cash and cash equivalents primarily for investments. The primary focus in on strengthening the professional squad, modernising and digitalising SIGNAL IDUNA PARK and expanding the training ground in Dortmund-Brackel. Despite these investments, it is Borussia Dortmund’s aim to continue distributing a dividend to its shareholders every year, provided it generates a net profit. Against this background, on 30 June 2023, Borussia Dortmund reversed its revenue reserves amounting to EUR 147,662 thousand and partially reversed its capital reserves in an amount of EUR 4,754 thousand, which it offset against loss carryforwards from prior years. Thus, the Borussia Dortmund GmbH & Co. KGaA is reporting net accumulated losses of EUR 0 thousand for the 2022/2023 financial year. This will legally allow Borussia Dortmund to once again pay its shareholders a dividend in future financial years, provided it generates the necessary net profits.
