Dividend Payout Ratio Hits 100%
Mercedes-Benz Korea, the No. 1 imported car brand in Korea, surpassed 6 trillion won in sales in 2021. Its net profit of 147.3 billion won was all paid out as dividends to the German headquarters and its major shareholders.
Mercedes-Benz Korea’s sales in 2021 reached 6,121.3 billion won, up 14.7 percent from 5,338.2 billion won in 2020, according to Mercedes-Benz Korea’s audit report released on April 13. During the same period, its operating profit and net income climbed 8.8 percent and 14.3 percent to 217.5 billion won and 147.3 billion won, respectively
Mercedes-Benz Korea ranked first in sales among foreign car brands in Korea for six years from 2016 to 2021. Last year alone, it sold 76,152 units. Its performance stands out compared with second-ranked BMW as well as GM Korea, Renault Korea Motors, and SsangYong Motor which produce cars in Korea.
BMW Korea logged 4,673.3 billion won in sales and 99.6 billion won in operating profit in 2021. GM Korea, Renault Korea Motors and SsangYong Motor posted 6,973.8 billion won, 3,859.9 billion won and 2,429.3 billion won in sales in 2021, respectively. All of them recorded operating losses. GM Korea lost 376 billion won, SsangYong Motor 261.3 billion won, and Renault Korea Motors 8.1 billion won.
Mercedes-Benz Korea paid about 147.3 billion won, all of its net profit in 2021 to Mercedes-Benz headquarters with a 51 percent stake in Mercedes-Benz Korea and Hong Kong-based dealer Star Auto Holdings with the remaining 49 percent stake. The dividend payout ratio was 100 percent. This was a 24 percent drop compared to dividends of 192.9 billion won in 2020 which resulted in a payout ratio of 150 percent.