Latest news with #KT&G
Korea Herald
4 days ago
- Business
- Korea Herald
KT&G Posts Revenue and Profit Growth 3 Quarters in a Row--Strong Shareholder Return to Continue in H2
- Strong results based on new global launches and pricing—targets double-digit operating profit growth for the year -'Prioritizing Shareholder Value' by reinforcing high-dividend trends with a KRW 200 increase in interim dividend and annual KRW 660 billion +α in share cancellation SEOUL, South Korea, Aug. 7, 2025 /PRNewswire/ -- KT&G(KRX: 033780) held an earnings release conference call on the 7 th to announce its 2025 second quarter results. KT&G stated that the consolidated revenue reached KRW 1.5479 trillion and operating profit KRW 349.8 billion, delivering respective YoY growths of 8.7% and 8.6%. Q2 2025 marks the third consecutive quarter of revenue and operating profit growth since Q4 2024. In parallel, the first-half revenue surpassed KRW 3 trillion for the first time. KT&G's core business, the tobacco segment, continued the growth trend with revenue and operating profit growing 10% and 1.6% YoY to reach KRW 1.0906 trillion and KRW 321.8 billion respectively, owing to the exponential growth of the global CC business. The global cigarette segment recorded 5 consecutive quarters of "triple growth" of revenue, operating profit, and sales volume. Revenue was at KRW 469 billion, a YoY growth of 30.6%; and sales volume increased 9.1% YoY to reach 16.7 billion sticks, setting a new quarterly revenue and sales volume record. Adjusted operating profit excluding previous year's allowance for doubtful account refunds rose 51.1% YoY, securing high-growth momentum. The results reflect concrete results of KT&G CEO Kyung-man Bang's priority strategies—full local integration of value chains and transition into a CIC system. Furthermore, launch of new competitive products centered around "ESSE" in major regions including Asia-Pacific, Central Asia, and Latin America; expansion of premium range products in the portfolio; and price hikes based on brand power were valid strategies. When the global manufacturing facilities' material local-sourcing system is completed in 2025 H2, accelerated profit growth based on cost reduction is expected. Domestic NGP (Next Generation Products) segment recorded first-half market share of 45.8% based on increased "lil AIBLE" sales. Global stick sales volume rebounded to 2.2 billion sticks; a YoY increase of 4.2%. The health functional foods segment, operated by KGC, recorded an operating profit of KRW 6.2 billion. Despite the domestic economy's downturn, profitability-focused strategies, including optimization of marketing costs, led to profit. KT&G board convened on the same day, resolving to increase interim dividend by KRW 200 to KRW 1,400 per share in order to reinforce the high-dividend payout trend. The company plans to review dividend payout increases in line with stock price and profit growth. Additionally, KT&G decided to repurchase and cancel KRW 300 billion worth of treasury shares starting on the 8 th. On top of such plans, KT&G plans further share repurchase and cancellation schemes in H2 by utilizing resources from liquidation of non-core assets including real estate. The company has already cancelled KRW 360 billion worth of treasury shares held, equivalent to 2.5% of issued shares, in the first quarter of the year. Previously, KT&G revealed a best-in-class Value Up plan for 2024 to 2027 consisting of cash returns amounting to KRW 3.7 trillion that includes cash dividends and share repurchases; and share cancellation scheme for 20% of issued shares including cancellation of newly repurchased shares. Last year, in accordance with the plan, KT&G executed cash returns of KRW 1.1 trillion, achieving 100% total shareholder return ratio, while cancelling 6.3% of issued shares. This year, KT&G pursues Value Up programs in greater scale, continuing its top-tier shareholder value improvement policies. A KT&G spokesperson stated that "we have secured mid- to long-term growth momentum based on excellent performance of new product launches in major global markets as well as brand power-based price hikes. We will continue to advance our business with a goal of achieving double-digit annual operating profit growth this year. Based on our performance, we will execute share repurchasing and cancellation schemes according to plan and continue our high-dividend policies to prioritize shareholder value improvement."
Korea Herald
4 days ago
- Business
- Korea Herald
KT&G extends Q2 growth streak on robust global sales
KT&G, South Korea's leading tobacco manufacturer, has logged three consecutive quarters of revenue and profit growth through the second quarter, backed by strong demand in key global markets. According to the company on Thursday, sales in the April-June period jumped 8.7 percent on-year to reach 1.55 trillion won ($1.12 billion), with operating profit surging 8.6 percent to 350 billion won. Having sustained revenue and profit growth since the fourth quarter of last year, the company also reported that first-half revenue surpassed the 3 trillion won mark for the first time. 'We have secured mid- to long-term growth momentum based on the excellent performance of new product launches in major global markets as well as brand power-based price hikes,' a KT&G official said, adding that the company aims to achieve double-digit annual growth in operating profit this year. KT&G's core tobacco segment sustained its growth trajectory, with revenue and operating profit rising by 10 percent and 1.6 percent on-year, respectively. The global cigarette business, in particular, marked its fifth consecutive quarter of growth in revenue, profit and sales volume. Revenue and volume both hit new quarterly records, with revenue up 30.6 percent on-year to 469 billion won and sales volume rising 9.1 percent to 16.7 billion sticks. Adjusted operating profit, excluding last year's allowance for doubtful account refunds, soared 51.1 percent. Under the vision of CEO Bang Kyung-man, the company has prioritized full localization of its value chain and established smaller local units to respond more agilely to market needs. Cost reductions are expected in the second half of the year, once its raw material sourcing system is fully localized. Outside its core tobacco business, the company's domestic next-generation products segment captured a 45.8 percent market share in the first half, driven by robust sales of its heat-not-burn device Lil Aible. The health functional foods segment, operated by Korea Ginseng Corp., posted an operating profit of 6.2 billion, turning profitable as a result of optimized marketing spend and a focus on profitability-driven strategies.
Korea Herald
12-07-2025
- Business
- Korea Herald
K-cigarettes go global: KT&G lights up overseas markets
KT&G's overseas cigarette sales outstrip domestic in Q1; market sees trend moving forward As beauty and food products lead the so-called K-frenzy, Korean cigarettes are becoming the next major export success, powered by KT&G, the country's largest tobacco company. In the first quarter of this year, the company's overseas cigarette sales reached 449.1 billion won ($327 million), surpassing domestic sales of 373.6 billion won for the first time — momentum that analysts expect to persist throughout the year. This quarter saw overseas cigarette sales rise 23 percent in volume and 54 percent in revenue from a year earlier, while domestic sales fell by 9.3 billion won. 'It underscores the shift toward an overseas-centered structure,' said an analyst at Kyobo Securities, noting that the overseas sales share in KT&G's tobacco division rose from 39.5 percent last year to 47.5 percent this quarter. KT&G's overseas cigarette sales rose from 1.01 trillion won in 2022 to 1.13 trillion won in 2023, then climbed 28 percent to 1.45 trillion won last year. According to financial information provider FN Guide, KT&G is forecast to post 6.34 trillion won in total sales for the full year, a 7.3 percent increase from last year, with operating profit rising nearly 10 percent to 1.31 trillion won. The achievement manifests CEO Bang Kyung-man's aggressive drive to build a fully localized global value chain, enhancing agility and profitability in local markets. 'With a spirit of challenge, KT&G will continue to expand its global direct business to enhance both profitability and corporate value,' Bang said. Backed by region-specific strategies and expanded direct sales channels, KT&G, which now exports to 135 countries, has positioned its ultra-slim cigarette brand, Esse, at the forefront of global markets. The brand has gained significant traction across Asia-Pacific, with Indonesia accounting for over 20 percent of KT&G's total overseas sales. There, KT&G has pursued a successful localization strategy, offering products like Esse Berry Pop to cater to Indonesian consumers' preference for clove-based cigarettes. In Mongolia, KT&G has held over 50 percent market share since 2023, with annual sales rising from 300 million sticks in 2011 to 2.35 billion last year. Starting in June, KT&G made inroads into India's tobacco market by signing a distribution deal with local firm Kedara Trading LLP to launch its premium cigarette lineup in major cities such as New Delhi and Mumbai. According to the company, India is expected to become a new growth engine thanks to its rapidly expanding middle class and increasing demand for premium foreign cigarettes. 'To strengthen our global business performance, we set up in-house independent units for the Asia-Pacific and Eurasia regions last year, establishing dedicated strategy and marketing teams within each to enhance direct regional operations,' said a KT&G official. Esse's popularity extends beyond Asia. In the first quarter, the United Arab Emirates was KT&G's largest export destination, with shipments more than doubling to over 3,000 metric tons. From there, products are reexported throughout the Middle East. In line with its expanding global footprint, KT&G is boosting its overseas production capacity. In April, it completed a new factory in Kazakhstan with an annual capacity of 4.5 billion sticks, and construction of a new plant in Indonesia is underway.
Yahoo
11-06-2025
- General
- Yahoo
KT&G Social Welfare Foundation Rebuilds Earthquake-damaged Indonesian School, Holds Reopening Ceremony
– Reconstructs school in mountainous Cianjur region, improves local Indonesian education environment SEOUL, South Korea, June 11, 2025 /PRNewswire/ -- The KT&G Social Welfare Foundation improved education infrastructure for Harapan Kasih Bangsa Elementary and Middle School in Cianjur, Indonesia, and held a reopening ceremony on the 10th (local time). Harapan Kasih Bangsa Elementary and Middle School is located in the outskirts of a mountainous area located three hours by car from Jakarta. The school has suffered from poor learning conditions, having to hold classes in morning and afternoon groups, ever since the earthquake in 2022 destroyed some buildings and disrupted classes. The KT&G Social Welfare Foundation collaborated with Happy People to demolish the original building and replace it with a new two-story building with classrooms. The foundation also laid a foundation for a more stable learning environment for the local children by enhancing the general infrastructure, including teachers' offices, the program room, scientific equipment, sanitation facilities, and sports ground. Around 160 participants, including those from KT&G Social Welfare Foundation, Happy People, local Office of Education, and the school, joined the reopening ceremony to commemorate a new beginning for the new school. The rebuilding project is part of the local-centric social contribution activities that has been ongoing for over 10 years. By dispatching global volunteer groups since 2012, the KT&G Social Welfare Foundation has continuously provided residential and education infrastructure improvement support. The Foundation actively conducts various social responsibility programs in Indonesia. It has been operating a "global scholarship program" for talented students in Indonesia and other global locations for 8 years, aiding a total of 1,500 students as of last year. In Surabaya, the foundation completed the refurbishing project of the "KT&G Scholarship Foundation Korean Center" this year. The center provides Korean education courses and diverse culture programs for local residents. A KT&G Social Welfare Foundation spokesperson commented that "by conducting social responsibility activities, the KT&G Social Welfare Foundation has contributed to regional growth in various global locations including in Indonesia. The Foundation will continue to realize sustainable social values as a global citizen in the future." View original content to download multimedia: SOURCE KT&G Corporation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
KT&G Takes Legal Action Against Local Counterfeit Cigarette Manufacturers and Distributors in India
- Growing counterfeit cigarette manufacture and distribution leads to severe negative consequences for national credibility and regional economy SEOUL, South Korea, June 2, 2025 /PRNewswire/ -- KT&G, a global tobacco company, stated on the 2nd that it has taken civil legal action against local entities for manufacturing and distributing counterfeit products under its global superslim brand "ESSE." KT&G has recently confirmed that counterfeiters used aliases such as "KT&G India", "KT&G Punjab", and "KT&G Ambala" to illegally manufacture and distribute a significant volume of counterfeit cigarettes, appropriating the company's global superslim brand "ESSE." To prevent counterfeiting activities, KT&G has taken legal action against local manufacturers and distributors across India, emphasizing that the company is unrelated to "KT&G India", "KT&G Punjab", and "KT&G Ambala" in any way. Recently, the manufacture and distribution of counterfeit products under globally renowned brands are rapidly growing, gravely impacting national economy and regional societies. As the eradication of counterfeit tobacco becomes an urgent task, KT&G as well as other global tobacco manufacturers are heightening their responses. Alongside legal actions, KT&G also plans an official brand launch in the Indian market on June 2nd. Any inquiries, including tips on counterfeit products or questions regarding official sale points or imports are handled by the local Indian partner, Kedara (e-mail: info@ The manufacturer of the global brand ESSE, KT&G, is a well-known Korean company. It holds dominant positions in many markets, including the health functional foods market. It is also a global company that sells 870 brands across 148 countries as of 2024. Logo - View original content:
