Increased customer demand from “livelihood recovery coupons” and year-end peak season
300 won per share for ordinary shareholders, 200 won for the largest shareholder
Kyochon F&B, which operates Kyochon Chicken, announced in a disclosure on the 6th that its sales last year came to 517.4 billion won, with operating profit of 34.9 billion won. Sales increased by 7.6% year-on-year, and operating profit rose by 126.2%.
Kyochon F&B analyzed that last year’s sales were driven by improved consumer sentiment following the government’s consumption-boosting policies, increased peak-season demand, the growing popularity of professional sports, the launch of new products, and higher sales volume stemming from growth in subscribers to its own app. The company added that broader market penetration of Eunhasu Makgeolli from its fermentation workshop brand “Fermentation Workshop 1991,” the expansion of premium channels for craft beer, and the stabilization of new businesses such as sauces and eco-friendly packaging also contributed to growth.
As of the end of last year, the Kyochon app had approximately 7.33 million subscribers, up about 17.7% from a year earlier, with app-based sales accounting for 12% of total sales. Strengthening its own app is helping to preserve franchisee revenue by creating a customer lock-in effect and reducing the burden of order brokerage fees. In its global business, the company pursued growth and profitability improvements by expanding new outlets in markets such as China, Malaysia, and Dubai, reinforcing sales strategies in existing markets, and enhancing operations through automation and its own app-based systems.
However, operating profit in the fourth quarter declined year-on-year due to one-off costs reflecting higher raw material prices and discounts on cooking oil provided exclusively to franchisees. In contrast, full-year operating profit increased sharply, supported by a base effect from temporary costs incurred in the previous year during the process of bringing regional franchise headquarters under direct management, as well as improvements in the company’s profit structure.
In terms of dividends, the company will continue its policy of differentiated dividends for the largest shareholder in order to enhance shareholder returns and realize greater shareholder value. Accordingly, ordinary shareholders will receive a dividend of 300 won per common share, while the largest shareholder will receive 200 won per share, bringing the total dividend payout to 11.5 billion won, up about 176% from the previous year’s 6.5355 billion won. Kyochon F&B’s decision to maintain differentiated dividends for the largest shareholder has been part of its shareholder-friendly policy since the year-end dividends for fiscal 2023.
Kyochon F&B expects customer demand to continue expanding this year, driven by global sporting events and the growing popularity of professional sports in Korea. Major domestic securities firms also forecast that expectations for Kyochon F&B’s value-up potential will increase.
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