Pfizer distributed KRW 160 billion dividend over 2 years

'Profits skyrocketed during the COVID-19 pandemic'

Pfizer Korea’s total dividend payout last year amounted to KRW 60 billion…paid KRW 100 billion in dividened in 2022

Pfizer Korea has maintained a consistent dividend payout of KRW 12.48 million annually, based on a 20% preferred share dividend rate…paid the same dividend 16 times over 20 years

COVID-19 meidicines sales hike enabled high dividend

Pfizer Korea has decided on a large-scale dividend payout for the second consecutive year.

 

While the company maintained an annual dividend policy of KRW 12.48 million, it has distributed KRW 160 billion to its parent company over the past two years.

 

Large-scale profits during the COVID-19 pandemic enabled this high dividend.

 

According to the Financial Supervisory Service (FSS) on the March 15, Pfizer Korea’s total dividend payout last year amounted to KRW 60.01 billion.

 

It included an interim dividend of KRW 60 billion and an additional annual dividend of KRW 12.48 million.

 

Pfizer Korea’s 2024 interim dividend was applied a 6,501% face value dividend rate, meaning shareholders received over 60 times the face value of KRW 5,000 per share.

 

The interim dividend was distributed to 172,104 common shares, totaling KRW 55.9 billion, and 12,480 preferred shares, amounting to KRW 4.1 billion.

 

Pfizer Korea made the second consecutive year of large-scale dividend payments after 2023.

 

In 2023, the company distributed an interim dividend of KRW 100 billion and an annual dividend of KRW 12.48 million.

 

The 2023 interim dividend was applied at a 10,835% face value dividend rate.

 

Pfizer Korea

The largest shareholder of Pfizer Korea is Pfizer’s subsidiary in the Netherlands, 'PF OFG South Korea 1 B.V.,' which holds a 99.99% stake in the company.

 

Pfizer Korea significantly increased its dividend payouts as its sales surged during the COVID-19 pandemic.

 

In 2020, Pfizer Korea recorded KRW 391.9 billion in sales.

 

The sales more than quadrupled to KRW 1.694 trillion in 2021 and further skyrocketed to KRW 3.2254 trillion in 2022, an eightfold increase in sales over two years.

 

Although its 2023 sales fell to KRW 1.6018 trillion, roughly half of the previous year's, it still was a fourfold increase compared to 2020.

 

In 2020, Pfizer Korea reported an operating loss of KRW 7.2 billion and a net loss of KRW 21.2 billion.

 

However, in 2022, its operating profit and net profit surged to KRW 120.1 billion and KRW 119.5 billion, respectively.

 

In 2023, the company reported KRW 59.2 billion in operating profit and KRW 84.9 billion in net profit.

 

Pfizer began its messenger RNA (mRNA) vaccine development in March 2020 in collaboration with BioNTech, using BioNTech's mRNA technology and Pfizer's extensive experience in global clinical trials.

 

Within less than a year of COVID-19 spread, Pfizer successfully developed Comirnaty, a vaccine with 95% preventive effect.

 

The U.S.

 

Food and Drug Administration (FDA) granted it Emergency Use Authorization (EUA) in December 2020, and it received EUA approval in Korea in March 2021, leading to its full-scale supply through Pfizer's Korean subsidiary.

 

Pfizer later developed the COVID-19 antiviral treatment Paxlovid.

 

The Korean government used Paxlovid as a COVID-19 treatment.

 

Pfizer Korea continued implementing a unique dividend policy, consistently paying KRW 12.48 million in annual dividends.

 

The company calculates its dividend payout based on a 20% dividend rate applied to preferred share capital, which totals KRW 62.4 million.

 

Pfizer Korea's total capital stands at KRW 922.92 million, with KRW 860.52 million in common shares (172,104 shares) and KRW 62.4 million in preferred shares (12,480 shares).

 

Since 2005, Pfizer Korea has maintained a consistent dividend payout of KRW 12.48 million annually, based on a 20% preferred share dividend rate, except for four instances in the past 20 years.

 

However, in 2017, the dividend payout was set at KRW 79.794 billion, exceeding net profit.

 

At that time, the dividend rate was set at 660% of the face value (KRW 5,000 per share) for both common (2,455,520 shares) and preferred shares (12,480 shares), resulting in a significantly expanded payout.

 

In 2008, the company allocated KRW 190 billion in dividends despite posting a KRW 600 million deficit that year, setting a 3045% dividend rate based on the face value.

 

However, whether Pfizer Korea's high dividends will continue remains uncertain.

 

In 2023, revenue fell 51.1% year-over-year to KRW 783.7 billion.

 

Operating profit declined 57.4%, from KRW 63.8 billion to KRW 27.2 billion.

 

The company's 2023 revenue and operating profit decreased 75.7% and 77.4%, respectively, compared to 2022, mainly due to the impact of entering endemic and declining COVID-19-related sales.