Alphabiz - K-Car′s operating profit has plummeted by 30 percent, but the dividend will remain the same

This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

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[Alpha Biz=(Chicago) Reporter Kim Jisun] Used car maker K-Car's operating profit plunged nearly 30%, but dividends remain the same.

K-Car announced on the 9th that it will pay 190 won per share as a settlement dividend. The total dividend amount is 9,136,441,270 won. K-Car allocated 190 won per share each quarter as a quarterly dividend. Last year, the total amount of dividends exceeded 36 billion won. K-Car is a major shareholder of Hahn & Company with a 72% stake.

It is a typical shareholder return policy for the company to make profits and give dividends to shareholders. However, K-Car's operating profit plunged 29.6% year-on-year to 50 billion won last year. 

 

This is because the factory price of new cars has decreased and used car transactions have naturally decreased due to high prices and high-interest rates in addition to auto semiconductor shortages. 

 

Operating profit in the fourth quarter of last year was 9.5 billion won, down 32.6% from a year earlier. EBITDA margin ratio also worsened to 4.4%, but dividends continue.

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)