Unanimous Backing at Tradition's AGM Signals Resilience and Growth Momentum

The 2025 Annual General Meeting (AGM) of Compagnie Financière Tradition SA (CFT) delivered a resounding endorsement of management’s strategy, with shareholders approving all key resolutions—including dividend distribution, capital reduction, and leadership reappointments—by unanimous vote. This outcome underscores a rare alignment between shareholders and management, positioning CFT to capitalize on its financial strength and strategic agility amid evolving market conditions.

Dividend Approval: Rewarding Shareholders Amid Growth

The Board’s proposal to distribute a CHF 6.75 per share dividend, totaling CHF 51.8 million, reflects confidence in the company’s robust cash flow. With retained earnings of CHF 56.1 million carried forward, this decision balances shareholder returns with reinvestment opportunities. The ex-dividend date on May 26 and payout on May 28 align with the company’s tradition of timely distributions, appealing to income-focused investors.

Capital Reduction: Prudent Capital Management

The cancellation of 142,183 treasury shares—acquired under a buyback program launched in 2023—reduces the share capital from CHF 355,457.50 to CHF 19,988,005. This move, compliant with Swiss corporate law and validated by auditor KPMG, optimizes equity efficiency and signals confidence in the company’s balance sheet. With a net cash position of CHF 305 million as of 2024, CFT has ample liquidity to navigate potential economic headwinds while maintaining shareholder value.

Leadership Continuity: Stability Over Change

The re-election of Patrick Combes as Chairman, alongside all nine directors, including long-serving executives like Christian Baillet and Alain Blanc-Brude, reinforces continuity in leadership. Shareholders’ unanimous approval of this slate suggests they prioritize stability over disruption, particularly given CFT’s strong 2024 performance: 11% revenue growth, a 23% rise in operating profit, and a 12.5% dividend hike. This trust in management’s track record is a critical differentiator in an industry where abrupt leadership shifts often unsettle stakeholders.

Compensation Approval: Rewarding Performance, Not Risk

The approval of CHF 25 million in aggregate compensation for the Executive Board and CHF 310,000 for non-executive directors in 2026—despite their high absolute figures—reflects alignment between pay and performance. With CFT’s equity rising to CHF 555.4 million in 2024, shareholders likely view these figures as commensurate with the firm’s success. The advisory vote on the 2024 remuneration report also passed, signaling approval of the compensation framework’s fairness and transparency.

Strategic Implications: Growth Amid Uncertainty

The AGM outcomes highlight three critical strategic priorities:
1. Capital Efficiency: The capital reduction and buyback program extension (to May 2026) aim to enhance shareholder returns while maintaining flexibility for opportunistic investments.
2. Risk Mitigation: Unanimous support for the Board’s risk management, including robust liquidity reserves, suggests shareholders believe CFT can navigate macroeconomic volatility.
3. Leadership Trust: The reappointment of seasoned executives signals a preference for continuity in an industry where institutional knowledge is a competitive advantage.

Investment Case: A Stable Core in a Volatile Market

For investors, CFT’s AGM results present a compelling opportunity:
- Dividend Safety: A 2.4% yield (based on a CHF 280 share price) offers stability in volatile markets.
- Growth Potential: The 2024 revenue surge (CHF 1.13 billion) and expanding buyback program signal confidence in future earnings.
- Governance Strength: Unanimous approvals across all resolutions reflect minimal shareholder dissent, a rarity in an era of heightened ESG scrutiny.

Risks and Considerations

• Geopolitical Risks: CFT’s global operations expose it to trade tensions and currency fluctuations.
• Compensation Scrutiny: While approved, the Executive Board’s compensation could draw criticism if future performance falters.
• Interest Rate Sensitivity: A prolonged rate-hike cycle may pressure the financial services sector’s margins.

Conclusion: A Vote of Confidence Warrants Action

The unanimous approval of all AGM resolutions marks a pivotal moment for CFT. Shareholders have not merely endorsed current strategy—they have signaled trust in management’s ability to navigate uncertainty while rewarding investors. With a strong balance sheet, proven leadership, and a clear path to capital efficiency, CFT emerges as a defensive yet growth-oriented play for portfolios. Investors seeking stability with upside potential should act swiftly: the AGM’s outcomes are a clarion call for capital allocation.

Act now—before the market catches up to this underappreciated growth story.