FILA Holdings Corp.

- 50 billion won share buyback plan and 20.24 billion won special dividend confirm FILA Holdings’ continued commitment to shareholders, while Q3 earnings grow 6% year-on-year to reach 1.50 trillion won

FILA Holdings announced today that it signed an agreement to buy back shares while approving a special dividend at its board of directors meeting on Nov. 12, cementing its policy of strengthening shareholder returns. 

The company’s agreement to buy back 50 billion won worth of shares raises the total value of FILA Holdings’ planned share buyback announced this year to 100 billion won. As of Nov. 13, it has already repurchased approximately 49.95 billion won worth of shares, representing 99.9% of the initial 50 billion won worth of shares the company said it would buy back in March, when it also retired all of its 656,383 treasury stocks.

FILA Holdings’ latest special dividend payout will amount to 340 won per share, as the company’s management maintains a strong commitment to shareholder returns despite a difficult business environment. In accordance with Article 165-12 of the Financial Investment Services and Capital Markets Act, dividend payments will be made within 20 days of the date of the board’s resolution.

The company’s shareholder-friendly stance is reflected by its dividend payouts being among the highest in the industry, including three consecutive years of special dividends. Last year, it paid shareholders approximately 65.51 billion won in total dividends, with a special dividend amounting to approximately 20.43 billion won alongside an annual dividend of approximately 45.07 billion won. As FILA Holdings has expanded its policy beyond special dividends to include share buybacks and the retirement of treasury stocks, its proactive shareholder return plan has been positively received by the market and recently featured in the Korea Value-Up Index.  

Meanwhile, FILA Holdings announced its third quarter results through public disclosure on Nov. 14. It reported consolidated revenue of 1.50 trillion won and operating profit of 93.37 billion won, up 6% and 0.9%, respectively, year-on-year. 

Golf-related subsidiary Acushnet posted revenue of 844.11 billion won, up 8.4% year-on-year, driven by the ongoing strength of the U.S. golf market and robust sales of newly launched Titleist golf clubs. FILA generated revenues from a diversified portfolio of businesses, including joint ventures and license business segments. Its reported quarterly revenue stood at 205.35 billion won, down 2.8% year-on-year.

"We have decided to initiate an additional share buyback this year and distribute a special dividend for the third consecutive year, supported by robust cash flow from top-performing segments like Acushnet and Full Prospect,” said FILA Holdings CFO Ho Yeon (Aaron) Lee. He added, “We remain committed to pursuing diverse and effective shareholder return strategies to enhance shareholder value.”