Minimum Dividend Raised from 2,000 KRW to 2,500 KRW
Sustainable Growth and Profit Improvement... "Strengthening Shareholder Returns"
Targeting 34 Trillion KRW in Sales and 1 Trillion KRW in Operating Profit by 2027
Emart announced on the 11th a value enhancement (value-up) plan that includes raising the minimum dividend by 25% and canceling treasury shares.
First, the minimum dividend will be increased from the current 2,000 KRW per share to 2,500 KRW per share. Accordingly, Emart shareholders are guaranteed a minimum dividend of 2,500 KRW per share for three years from this year through 2027. Emart will invest an additional 13.4 billion KRW annually to increase the dividend.
Previously, Emart set the minimum dividend at 2,000 KRW at the end of 2020 and has continuously pursued policies to enhance shareholder value, such as raising the annual return resource to 20% of operating profit in 2023, up 5 percentage points from before. Additionally, the company plans to cancel more than 50% of its treasury shares held from this year through next year.
Emart currently holds 1,087,466 treasury shares, accounting for 3.9% of the total shares. The plan is to cancel a total of 560,000 shares, 280,000 shares per year. This corresponds to 2% of the total shares. The company explained that the increase in minimum dividends and the cancellation of treasury shares express its determination and confidence to maximize shareholder value through stock price appreciation.
Emart also disclosed its goal to achieve consolidated sales of 34 trillion KRW and operating profit of 1 trillion KRW by 2027 through strengthening its core business competitiveness. As a detailed execution plan, it will open three new stores starting with Traders Magok this month. Preparations are underway to open two new stores in 2026 and three new stores in 2027.
It is also undertaking a comprehensive renovation and spatial reorganization of existing stores to transform them into future-oriented stores where customers want to visit and stay longer. Last year, Emart transformed its Jukjeon store into a mall-type 'Starfield Market' and newly launched the grocery-focused small store 'Emart Food Market' in Suseong, which are representative examples.
To improve profitability, integrated purchasing and logistics efficiency maximization will also be pursued. By integrating purchasing across different business types such as Emart, Traders, and Everyday, the company plans to enhance purchasing expertise and improve profitability and efficiency through logistics system improvements.
An Emart official stated, "We will become a continuously growing company through increasing shareholder value and enhancing corporate value."
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