FILA Holdings is set to fortify its commitment to responsible management and enhanced shareholder value, announcing a strategic decision to retire existing treasury stocks and execute a substantial share buyback this year. The company disclosed plans to retire 656,383 treasury shares, totaling 26.12 billion won, representing 1.1% of its total issued shares, with the retirement scheduled for March 28.
In a move to further affirm its dedication to shareholder interests, FILA Holdings revealed a proactive buyback plan, committing to repurchase up to 50 billion won worth of shares throughout the year. This initiative commences with a first trust agreement to buy back shares worth up to 10 billion won from March 21 to September 20, underscoring the firm’s robust strategy to boost shareholder value in line with its five-year corporate plan.
Amidst this shareholder-centric approach, FILA Holdings also confirmed the disbursement of its annual dividend for 2023 following the approval of its financial statements at the upcoming regular shareholders’ meeting. The company’s consistent policy in rewarding its shareholders is evidenced by its consecutive special dividends payout since 2022.
The financial performance for the year 2023 revealed a consolidated revenue of 4.01 trillion won, marking a 5.1% decrease from the prior year, while operating profit saw a 30.2% decline year-on-year to 303.49 billion won. Despite these figures, subsidiary Acushnet showcased a strong performance, especially in North America, capitalizing on the high demand for Titleist golf balls and clubs. Meanwhile, FILA has engaged in significant brand revitalization efforts, particularly focusing on enhancing its direct business segments.
The strategic adjustments in sales channels, alongside store renovations and renewals, particularly by FILA Korea, are initiatives aimed at augmenting the brand’s value. FILA USA’s achievement in meeting its inventory management goals also contributed positively, setting a performance benchmark. These initiatives, though impacting short-term performance, are deemed crucial for laying a solid foundation for the brand’s future growth and market expansion.
CFO Ho Yeon (Aaron) Lee emphasized that the treasury stock retirement and share buyback are geared towards maximizing shareholder value, reflecting management’s confidence in the company’s future growth trajectory. FILA Holdings is keen on reinforcing its shareholder return policy, striving to stand out as a shareholder-centric corporation.
