Celltrion to Pay 750 Won per Share Cash Dividend... Over 1 Trillion Won Invested in Shareholder Returns This Year

Over 2 Trillion Won Invested in Dividends, Treasury Share Buybacks, and Cancellations This Year
Shareholder Return Ratio Expected to Far Exceed the 40% Target

Celltrion has decided to pay a cash dividend of 750 won per common share. This year, Celltrion has allocated over 1 trillion won to dividends, treasury share cancellations, and other shareholder return initiatives, continuing its commitment to strengthening shareholder return policies.

On December 11, Celltrion Group announced that its board of directors had approved this year’s dividend plans for both Celltrion and Celltrion Pharm. The dividends will be finalized and paid to shareholders after approval at the regular general shareholders’ meeting next year, with the record date set for December 31.

Record-High Dividend... 1 Trillion Won Invested in Shareholder-Friendly Policies This Year

Celltrion has decided to pay a cash dividend of 750 won per common share. The total dividend payout amounts to approximately 164 billion won, marking an all-time high for the company. The dividend amount was calculated based on approximately 218.61 million shares, which excludes about 12.35 million treasury shares from the total 230.96 million shares issued. Despite undertaking large-scale investments this year, such as acquiring a U.S. manufacturing facility, the company decided to pay this record-high cash dividend to further strengthen its ongoing shareholder return policies.

Seo Jungjin, Chairman of Celltrion Photo by Yonhap News

In particular, the actual value of the dividend is expected to increase further due to the previously secured non-taxable dividend funds and the bonus issue conducted this year. In March, Celltrion converted about 620 billion won of capital surplus into retained earnings and secured non-taxable dividend funds for reduced dividends. By utilizing these funds for dividends, shareholders will not be subject to the 15.4% dividend income tax, resulting in a higher effective dividend payout.

Additionally, in May, the company conducted a bonus issue of 0.04 new shares per share, effectively providing about a 4% stock dividend. As the new shares allocated through this year’s bonus issue are also included in the shares eligible for this cash dividend, shareholders who have held their shares throughout this period will see an even greater increase in their actual dividend received.

Prior to the dividend decision, Celltrion had been actively pursuing treasury share buybacks and cancellations since the beginning of the year, as part of its efforts to enhance shareholder value and recover the currently undervalued corporate value. Including the 844.2 billion won worth of treasury shares purchased by Celltrion this year, the total amount of Celltrion shares acquired at the group level amounts to 1.9 trillion won, with nearly 900 billion won worth of treasury shares cancelled by Celltrion. When combining the scale of treasury share cancellations and the cash dividend decided this time, the total resources invested in shareholder-friendly policies by Celltrion this year easily exceed 1 trillion won. If treasury share buybacks are also included, the total investment approaches 2 trillion won.

Aerial view of Celltrion Plant 2 in Songdo, Incheon. Photo by Kim Hyunmin

Shareholder Return Ratio Expected to Far Exceed Three-Year Average Target of 40%

Celltrion’s shareholder return ratio for this year is expected to expand even further. Taking into account treasury share buybacks and cancellations, as well as bonus issues, Celltrion’s shareholder return ratio for this year is projected to far exceed the three-year average target of 40% set in the company’s value-up program for 2027. The company plans to continue maximizing shareholder value through non-taxable and cash dividends going forward.

On the same day, Celltrion Pharm decided to pay a cash dividend of 200 won per common share and a stock dividend of 0.02 shares per share. The dividend is based on approximately 43.42 million shares, excluding about 260,000 treasury shares from the total 43.68 million shares issued.

Celltrion Pharm has continued its growth, recording its highest-ever performance through the third quarter of this year. With robust sales expansion expected in both its chemical and biosimilar business segments, the decision to pay both cash and stock dividends is described as a shareholder-friendly policy that balances future investment-such as plant expansion-and future growth potential. Celltrion Pharm has consistently prioritized joint growth with shareholders as its highest value in announcing its dividend plans.

A Celltrion Group representative stated, “This year’s dividend decision reflects our strong confidence in continued growth and our unwavering commitment to joint growth with shareholders, even as we prepare for large-scale expansion investments such as establishing new global production bases. Celltrion Group will continue to pursue a balanced approach to mid- and long-term growth strategies and shareholder return policies, solidifying its position as a leading company in sustainable growth.”

Meanwhile, on the same day, Celltrion’s board of directors also approved a capital increase of approximately 782.4 billion won (about 532.1 million dollars) for Celltrion USA to acquire Eli Lilly’s biopharmaceutical manufacturing facility in Branchburg, New Jersey, USA.

Employees are conducting product manufacturing in the cultivation room of Celltrion Plant 2 in Songdo, Yeonsu-gu, Incheon.

Celltrion USA (a wholly owned subsidiary of Celltrion) will be the entity responsible for acquiring and operating the U.S. manufacturing facility, utilizing the secured funds for the acquisition and plant operations. The capital increase will be executed in two stages: the first, amounting to approximately 655.5 billion won (445.8 million dollars), is scheduled for December 18, and the second, approximately 126.9 billion won (86.3 million dollars), will take place next year.

Last month, Celltrion completed the business combination review process for the acquisition of the U.S. manufacturing facility and has now secured the necessary funds, putting the company on the cusp of securing a global production base. The company plans to complete the acquisition within this year and, upon completion, will immediately begin contract manufacturing (CMO) supply of Eli Lilly’s drug substance (DS). In addition, Celltrion intends to quickly expand capacity (maximum production volume) to significantly enhance the competitiveness of its U.S. manufacturing facility.

This content was produced with the assistance of AI translation services.