Celltrion to Cancel 100 Billion Won Worth of Treasury Shares, Implementing Principle of Returning One-Third of Net Profit to Shareholders

[Financial News] Celltrion is launching a full-scale shareholder return policy by canceling approximately 100 billion won worth of treasury shares.
Celltrion announced on the 16th that it had resolved to cancel 544,299 treasury shares to enhance shareholder value. The cancellation is scheduled for the 30th, and the relisting is expected to be completed in October.
This cancellation is in accordance with Celltrion's recently announced mid- to long-term shareholder return policy. Celltrion has established a principle of returning approximately one-third of its annual consolidated net profit to shareholders through treasury share cancellations or cash dividends.
Accordingly, the total value of the treasury shares Celltrion plans to acquire and cancel this year has increased to approximately 200 billion won through two rounds. The company plans to prevent the possibility of disposing of treasury shares in the future by proceeding with both their purchase and cancellation.
Celltrion plans to determine the scale of cash dividends and treasury share purchases and cancellations by comprehensively considering stock price levels, market conditions, free cash flow, and its research and development (R&D) and capital investment plans.
Cash-generating capacity resulting from earnings growth was also presented as a foundation for shareholder returns. Celltrion recorded its highest-ever performance last year, with consolidated sales of 4.1625 trillion won and operating profit of 1.1685 trillion won. In the first half of this year, it recorded sales of 2.5387 trillion won and operating profit of 773.7 billion won.
Following its existing flagship products Remsima, Truxima, and Herzuma, prescriptions for follow-on products such as Yuflyma, Vegzelma, and OMLYCLO are also expanding. Celltrion plans to allocate profits to investments in future growth, including research and development and global production facilities, as well as to shareholder returns.
"This treasury share cancellation is a measure that puts the mid- to long-term shareholder return principles announced recently into concrete action," a Celltrion official said. "Based on solid performance and cash-generating capacity, we will continue investing for future growth while consistently implementing our shareholder return principles."

[email protected] Jeong Sang-hee Reporter