Korean firm strives to raise shareholder value
South Korea’s KT&G announced on Nov. 3 that it has decided to acquire treasury stocks worth about 350 billion won ($260 million) in accordance with the mid-to long-term shareholder return policy.
In addition, the Seoul-based corporation is also considering increasing dividends per share by more than 200 won compared to the previous year.
In November last year, KT&G announced a shareholder return policy worth a total of 2.75 trillion won to implement dividends of about 1.75 trillion won and purchase treasury stocks of about 1 trillion won over the next three years.
Back then, the tobacco company said that such measures were designed to strengthen the predictability of mid- to long-term shareholder return and expand shareholder value.
KT&G then purchased about 350 billion won in treasury stocks last December and paid dividends worth 575.9 billion won.
As of fiscal 2021, the total shareholder return was 924.2 billion won, and the dividend payout ratio was 58.9 percent.
In the meantime, KT&G noted that it recorded the highest quarterly performance in terms of sales in the third quarter.
KT&G’s third-quarter sales rose 8.5 percent year-on-year to 1.62 trillion won ($1.18 billion) on a consolidated basis, which is analyzed to be due to the growth of domestic and foreign electronic cigarette sectors and overseas cigarette companies.
“KT&G is striving to enhance shareholder value through investment for long-term growth based on a stable financial structure and the nation’s best shareholder return policy,” said Bang Kyung-man, general manager of KT&G.
“We will become a globally leading company by the continuing growth of future strategic businesses such as the e-cigarette business and dry ginseng.”
KT&G is headed by President Baek Bok-in.