Poland's Arlen expects higher demand due to increased defence spending

GDANSK (Reuters) -Polish protective clothing manufacturer Arlen Group expects demand for its products to grow due to increased defence spending on modernising soldiers' equipment in Poland, CEO Andrzej Tabaczynski said during a discussion with investors.

The company adopted a policy in February to allocate 30% to 50% of its consolidated annual net profit to dividends and will continue paying dividends in the future provided its investment needs are secured, the CEO said.

In 2024, Arlen Group's total sales revenue surged 26% to 461 million zlotys ($123.13 million), with 81.4% coming from public sector contracts supplying protective clothing to uniformed services.

In late May, the company announced plans for an initial public offering on the Warsaw bourse, expected on June 24. It will be Poland's second IPO, following medical diagnostics company Diagnostyka's 1.7 billion zloty share sale in January.

($1 = 3.7441 zlotys)

(Reporting by Rafal W. Nowak;Editing by Bernadette Baum)