Celltrion (068270.KS) has completed the cancellation of approximately 100 billion won worth of treasury shares, accelerating its shareholder return program. With additional buybacks and cancellations slated for completion within the year, the company's cumulative shareholder returns this year are expected to reach approximately 2 trillion won.
Celltrion said the treasury share cancellation, carried out to stabilize its stock price and enhance shareholder value, was finalized through a listing change on Tuesday. A total of 488,977 shares were retired, reducing the company's total issued shares to approximately 221.63 million. The company expects this will drive improvements in earnings per share (EPS) and boost per-share value.
The cancellation follows through on the company's previously disclosed plan to buy back and fully retire approximately 100 billion won worth of treasury shares. Separately, Celltrion is also conducting an additional 100 billion won treasury share buyback. If those shares are also cancelled within the year, the cumulative scale of treasury share cancellations this year is expected to reach approximately 2 trillion won.
Over the past three years, Celltrion has cancelled approximately 18.56 million treasury shares on a cumulative basis, equivalent to about 8.4% of the current total issued shares. The company is also implementing market response measures announced last month. Alongside a bonus share issue of approximately 10.92 million shares, the company and its largest shareholder are each proceeding with 100 billion won in share purchases, totaling 200 billion won. Employees are also expected to participate in stock purchases through an employee stock ownership subscription.
Celltrion attributes the shareholder return policy to improved earnings and its mid- to long-term growth strategy. Boosted by expanded sales of high-margin new biosimilars, the company posted record quarterly results in the first quarter of this year, with revenue of 1.145 trillion won and operating profit of 321.9 billion won. Its full-year targets stand at 5.3 trillion won in revenue and 1.8 trillion won in operating profit.
"The successive treasury share cancellations and additional purchases reflect our confidence in the company's solid fundamentals and future growth," a Celltrion official said. "We will simultaneously expand shareholder returns and strengthen the competitiveness of our core business to enhance corporate value."
