Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
FILA Holdings boosts shareholder returns with $373 mil. plan
FILA Holdings' headquarters in Seoul / Courtesy of FILA Holdings
By Nam Hyun-woo
FILA Holdings has announced a plan to allocate up to 500 billion won ($373 million) in shareholder returns over the next three years, reinforcing its commitment to long-term shareholder value.
The company made the announcement during its investor relations day on Friday, where it revealed an updated shareholder return policy designed to balance financial flexibility with sustainable growth.
The revised policy raises the company’s total cumulative shareholder return target to up to 800 billion won from 2022 to 2027, reflecting a 200 billion won increase over its previous goal. The company emphasized its proactive approach to capital allocation and shareholder engagement, highlighting its focus on special dividends, share buybacks and treasury stock retirements.
Since implementing its shareholder return policy in 2022, FILA Holdings has delivered three consecutive years of special dividends and other return initiatives. In 2024, total shareholder returns reached 170 billion won, with a shareholder payout ratio of 201.8 percent. Over the past three years, the company has returned approximately 330.4 billion won to shareholders, surpassing more than 55 percent of its initial 600 billion won target within its five-year plan.
By extending its shareholder return policy through 2027, FILA Holdings aims to enhance predictability for investors while maximizing shareholder value. The company’s strong financial position supports this commitment, bolstered by a solid performance from its U.S. golf subsidiary, Acushnet, favorable currency exchange rates and improved cost management.
At the same time, FILA Holdings announced its financial results for 2024, reporting a solid increase in both revenue and operating profit. Its consolidated revenue reached 4.27 trillion won, marking a 6.5 percent increase compared to the previous year. Operating profit surged by 18.9 percent year over year, totaling 360.8 billion won.
“With our enhanced shareholder return policy, we are reinforcing our long-term commitment to maximizing shareholder value,” said Lee Ho-yeon, chief financial officer of FILA Holdings.
“Strong cash flows from our core businesses, including Acushnet and our strategic joint ventures, allow us to execute disciplined capital allocation strategies that drive sustainable growth and profitability.”