Pfizer Korea dividend KRW 12.48M, net profit KRW 119.5B

Dividend remained the same at KRW 12.48 million for 5 consecutive years...dividend payout ratio 0.01%

Despite posting record-breaking performance last year, Pfizer Korea’s dividend was set at only KRW 12.48 million.

 

The company adhered to its dividend policy of ’20% preferred stock’ regardless of its performance.

 

According to the Financial Supervisory Service (FSS), Pfizer Korea set its dividend payout for the last year as KRW 12.48 million.

 

With the decision, the company’s dividend payout has now remained the same at 12.48 million for five consecutive years.

 

# i1 The dividend was calculated at the same level as before even though Pfizer Korea’s performance improved significantly due to sales of COVID-19 drugs last year.

 

Pfizer Korea’s sales increased 90.4 YoY from KRW 1.694 trillion to KRW 3.225 trillion last year.

 

Its operating profit more than doubled from the previous year to reach KRW 120.1 billion.

 

Sales of its COVID-19 vaccines and treatments raised the company’s sales performance.

 

Its sales had risen over fourfold in two years from KRW 391.9 billion in 2020, and profitability also improved significantly from its operating loss of KRW 7.2 billion in 2020.

 

The company’s net profit also increased 24.0% YoY to reach KRW 119.5 billion.

 

In general, companies pay out dividends to shareholders proportionate to their increase in net profit.

 

However, Pfizer’s dividend remained the same at KRW 12.48 million as in the previous year, and its dividend payout ratio was a mere 0.01%.

 

Pfizer Korea calculated its dividend by applying a 20% dividend rate to its preferred stock capital.

 

Pfizer Korea’s total capital is KRW 922.92 million.

 

Among them, the common stock capital (172,104 shares) is KRW 860.52 million, and the preferred stock capital (12,480 shares) is KRW 62.4 million.

 

Therefore, with a 20% preferred stock, the dividend was set at 20% of the KRW 62.40 million, at KRW 12.48 million.

 

Pfizer Korea’s largest shareholder is Pfizer’s Dutch subsidiary, 'PF OFG South Korea 1 B.V,’ which owns 99.99% of the shares.

 

Therefore, PF OFG South Korea 1 B.V., which owns all of the company’s preferred stock, will be receiving a dividend of KRW 12.8 million.

 

Pfizer Korea had paid dividends of KRW 12.48 million based on the same standard of '20% preferred stock' for all but two occasions over the past 20 years since 2003.

 

In 2017, its dividends were set at KRW 79.79 billion, which was higher than its net profit.

 

At that time, the dividend rate was set at 660% of the face value of KRW 5,000 for both its common stocks (2,455,520 shares) and preferred stocks (12,480 shares), increasing dividends.

 

In 2008, the dividend was set at KRW 190 billion.

 

Even though the company recorded a deficit of KRW 600 million at the time, the high dividend was determined based on a dividend rate of 3045% compared to face value.

 

Over the past 20 years, these two were the only occasions the company set high dividends, and it upheld its small dividend policy of KRW 12.48 million during the rest of the period.