Coway Sets Ambitious Revenue Goals with New Corporate Value-Enhancement Strategy for 2027

Coway's New Value-Enhancement Strategy: Aiming for KRW 5 Trillion by 2027

In a bold move to solidify its position in the environmental appliances sector, Coway Co., Ltd. has revealed its Corporate Value-Up Plan, setting a revenue goal of over KRW 5 trillion by 2027. This initiative emphasizes four crucial indicators aimed at driving sustainable shareholder value: continuous growth, improved shareholder returns, robust financial stability, and governance excellence.

Setting Revenue Goals with Continuous Growth

Coway aspires to achieve a compound annual growth rate (CAGR) of 6.5% from 2025 to 2027. To reach this revenue target, the company plans to expand its core business, venture into global markets, develop new brands, and pursue new business initiatives. The strategy includes entering new markets and establishing local subsidiaries that will implement tailored marketing strategies to bolster global brand recognition.

Furthermore, Coway intends to enhance its customer experience through its sleep and wellness brand, BEREX, with a more comprehensive offline presence in South Korea and targeted marketing campaigns designed to elevate brand awareness. In a new segment, Coway will explore opportunities in the silver care sector, aiming to launch innovative elder care services through its subsidiary, Coway Life Solutions, in early 2025.

Boosting Shareholder Returns

Coway is dedicated to enhancing shareholder returns through a decisive increase in its total shareholder return rate from 20% to 40%. This ambitious plan, driven by a strategy to balance ratified cash dividends and treasury stock purchases, is designed to provide consistent value to its investors. For the fiscal year 2024, Coway will distribute approximately 33% of its consolidated net income as cash dividends, with the remaining 7% allocated for treasury stock acquisition and retirement.

The foresight of achieving a 40% shareholder return is based on detailed projections of cash inflow and outflow through 2027. The aim is to maintain an optimal balance between operating cash flow and financial leverage while supporting future growth.

Optimizing Capital Structure for Stability

In a bid to uphold financial health, Coway has laid out new guidelines for managing its capital structure. The company plans to keep its net debt-to-EBIT ratio under control, not exceeding 2.5, which will ensure that financial burdens remain manageable while maximizing returns on investment outcomes. This balanced approach to leveraging finances will enable Coway to navigate economic fluctuations more effectively.

Advancing Corporate Governance

Recognizing the importance of governance in sustaining corporate health, Coway is actively working on enhancing its governance framework. The goal is to ramp up key governance indicators from 53% in 2024 to 87% by 2026, which significantly surpasses the current market average. Initiatives include promoting board independence and fostering diversity among board members. Coway plans to increase the number of outside directors and bring in qualified individuals with diverse expertise.

Jangwon Seo, CEO of Coway, expressed confidence in the Corporate Value-Up Plan, stating, "This initiative lays the groundwork for sustainable growth that benefits both our company and shareholders. We are steadfast in our commitment to shareholder-friendly management while seeking to enhance corporate value and ensure long-term viability."

As part of its ongoing evolution, Coway will continue to invest in research and development, improve its digital presence, and optimize customer service operations. With an unwavering focus on innovation, the company is poised to diversify its product lines and expedite growth in international markets.

For further insights into Coway’s Corporate Value-Up Plan, interested parties are encouraged to visit the company’s Investor Relations page, where more details are available.

About Coway Co., Ltd.

Established in 1989, Coway, dubbed the "Best Life Solution Company," has emerged as a leader in innovative home appliances aimed at enhancing lives. Its offerings include water purifiers, air purifiers, bidets, and bedding products. With a commitment to health and wellness, the company continues to cultivate a strong market presence, driven by cutting-edge technology and exemplary customer service.

For further information, visit Coway's website or their newsroom.