Pfizer Korea’s dividend returns to ₩12.48 million

Dividend shrank 99.98% YoY

High dividends of KRW 100 billion in 2023 and KRW 60 billion in 2024 due to pandemic benefits

Maintained annual preferred stock dividend of KRW 12.48 million (20%)... Same dividend paid 16 times over 20 years

Pfizer Korea paid a dividend of KRW 12.48 million to its parent company last year. While the company paid KRW 160 billion in dividends in 2023 and 2024 as earnings surged due to pandemic-related benefits, it returned to its “20% of preferred stock capital” dividend policy after 3 years, resulting in a dividend payout ratio of just 0.06%.

According to the Financial Supervisory Service on the 18th, Pfizer Korea’s dividends paid to its parent company last year totaled KRW 12.48 million. The dividend payout ratio was 0.06%. This means that only 0.06% of last year’s net profit of KRW 19.8 billion was distributed to the parent company.

Pfizer Korea’s dividend for last year was reduced by 99.98% compared to the previous year’s KRW 60.01 billion. In 2023, Pfizer Korea paid out KRW 100.012 billion in dividends. This is the first time in 3 years, since 2022, that Pfizer Korea has set its dividend at KRW 12.48 million.

Pfizer Korea’s annual revenue (left) and operating profit (right) (Unit: KRW 100 million, Source: Financial Supervisory Service)

Pfizer Korea’s largest shareholder is Pfizer’s Dutch subsidiary, ‘PF OFG South Korea 1 B.V.’, which holds a 99.99% stake.

Pfizer Korea has maintained a unique dividend policy of keeping the annual dividend at KRW 12.48 million. From 2018 to 2022, it paid the same dividend of KRW 12.48 million for 5 consecutive years.

Pfizer Korea calculated the dividend by applying a 20% dividend payout ratio to the preferred stock capital. Pfizer Korea’s total capital stock is KRW 922.92 million. Of this, common stock (172,104 shares) accounts for KRW 860.52 million, and preferred stock (12,480 shares) accounts for KRW 62.40 million. A dividend of KRW 12.48 million , 20% of the KRW 62.40 million in preferred stock capital, was set.

The high dividends in 2023 and 2024 are analyzed as a result of significantly improved performance during the COVID-19 pandemic.

Pfizer Korea recorded revenue of KRW 391.9 billion in 2020, which increased more than fourfold to KRW 1.694 trillion in 2021, and surged to KRW 3.2254 trillion in 2022, marking more than an eightfold increase over two years. Revenue in 2023 decreased to KRW 1.6018 trillion, about half of the previous year, but this figure is still more than four times higher than in 2020.

Pfizer Korea recorded an operating loss of KRW 7.2 billion and a net loss of KRW 21.2 billion in 2020, but in 2022, operating profit and net profit reached KRW 120.1 billion and KRW 119.5 billion, respectively. In 2023, operating profit was KRW 59.2 billion and net profit was KRW 84.9 billion.

Pfizer partnered with Germany’s BioNTech in March 2020, when COVID-19 began spreading globally, to develop an mRNA vaccine. The combination of BioNTech’s mRNA technology and Pfizer’s extensive global clinical experience created synergy.

Pfizer successfully developed the Comirnaty vaccine with 95% efficacy in less than a year after the outbreak. It received emergency use authorization from the U.S. FDA in December 2020 and was approved in Korea in March of the following year, leading to full-scale supply through its Korean subsidiary. Pfizer also successfully developed the COVID-19 treatment Paxlovid, which the Korean government procured and used.

In 2023 and 2024, annual dividends were maintained at KRW 12.48 million, but interim dividends of KRW 100 billion and KRW 60 billion were additionally paid, respectively. Dividend payout ratios reached 117.76% and 168.17% for 2023 and 2024.

As performance declined after the COVID-19 pandemic phase, the company appears to have returned to its previous dividend policy. Pfizer Korea’s revenue in 2024 was KRW 783.7 billion, down 75.7% from two years prior, and operating profit decreased by 77.4% from KRW 120.1 billion to KRW 27.2 billion. Last year’s revenue and operating profit were KRW 586.1 billion and KRW 6 billion, respectively, decreasing by 25.2% and 77.9% year-on-year. Compared to 2022, revenue dropped by 81.9% and operating profit by 95.0%

Over the past 20 years since 2005, Pfizer Korea has paid dividends of KRW 12.48 million based on the “20% preferred stock” rule in all but four years.

In 2017, the dividend was set at KRW 79.794 billion, exceeding net profit. At the time, both common and preferred shares had a dividend rate of 660% of par value, increasing the total payout. In 2008, a dividend of KRW 190 billion was set. Despite recording a loss of KRW 600 million that year, the company set a dividend payout ratio of 3,045% relative to par value.