Latest news with #Kyung-manBang
Korea Herald
6 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."
Malaysian Reserve
08-05-2025
- Business
- Malaysian Reserve
KT&G's Strong Global Cigarette Business Tows Q1 Revenue and Operating Profit Growth
– Q1 consolidated revenue stands at 1.491 Trillion KRW, operating profit at 285.6 billion KRW, 15.4% and 20.7% YoY growth respectively – 'Triple Growth' of operating profit, sales volume, and revenue in the global cigarette business, accelerates core business profitability-based growth SEOUL, South Korea, May 8, 2025 /PRNewswire/ — On the 8th, KT&G(KRX: 033780) hosted an earnings call, announcing results for the first quarter of 2025. KT&G reported a consolidated revenue of 1.491 trillion KRW and consolidated operating profit of 285.6 billion KRW, a year-on-year growth of 15.4% and 20.7% respectively. Revenue and operating profit both showed double-digit growth, while profit growth surpassed that of revenue, demonstrating the results of profitability-focused business management. In KT&G's main business, the cigarette business, revenue grew 15.3% YoY reaching 988 billion KRW and operating profit grew 22.4% reaching 252.9 billion KRW, resulting from the high growth of the global business. Price hikes and sales volume growth in major markets led to the global cigarette business's 'triple growth' in operating profit, sales volume, and revenue for four consecutive quarters. The global business's operating profit soared with 312.5% growth and revenue rose 53.9% YoY to record 449.1 billion KRW, marking a new historic high in quarterly performance. The achievements resulted from CEO Kyung-man Bang's fully-local value chain strategy that was implemented since his inauguration last year. In addition, local infrastructure expansion such as the completion of the new factory in Kazakhstan last April, and the upcoming completion of the new Indonesian factory next year is expected to accelerate the growth of the global business even further. The NGP business, with its flagship brand 'lil Hybrid', saw a 6.5% YoY revenue growth in the Korean market. The Health Functional Foods (HFF) division, managed by KGC (Korea Ginseng Corporation), reported revenue growth of 1.9% YoY despite slowdown of the domestic economy owing to Korean holiday promotions and growth in major global markets. As the performance of development projects were reflected, the real estate division contributed to profitability improvements of the corporation, with revenue and operating profit reaching 100.4 billion KRW and 10.4 billion KRW. Previously, KT&G announced shareholder return programs totaling 3.7 trillion KRW between 2024 and 2027 that includes cash dividends as well as stock repurchasing and cancellation of 20% or more of outstanding shares. Last year, KT&G made a total cash return of 1.1 trillion KRW, reaching 100% total shareholder return, while cancelling treasury shares equivalent to 6.3% of outstanding shares. In 2025, KT&G continues to implement its shareholder value improvement strategy, top-tier in the Korean market, and pursuing value-up programs in greater scale; in the first quarter, KT&G has completed the cancellation of treasury stocks amounting to 2.5% of outstanding shares worth approximately 360 billion KRW. A KT&G spokesperson stated that 'despite hostile business conditions such as a sharp rise in foreign exchange rates and a decelerating domestic economy, the company saw a mutual growth of revenue and operating profit by focusing on enhancing competitiveness of the core business profitability,' further commenting that 'the company will secure future growth momentum through increased global competitiveness and an expansion of business scope from cigarettes to 'Modern Products.''
Korea Herald
23-04-2025
- Business
- Korea Herald
KT&G Establishes Eurasian Export Outpost with Completion of Kazakhstan Factory
- New Kazakhstan factory with total gross floor area of 52,000㎡ expected to meet Eurasian demand as core manufacturing base - MOU signed after completion ceremony to assist Abai wildfire recovery and reforestation SEOUL, South Korea, April 23, 2025 /PRNewswire/ -- KT&G (KRX: 033780), on the 22nd, hosted the completion ceremony of its new Kazakhstan factory which will be the production hub for the Eurasian market. The ceremony took place at the factory grounds in Almaty, Kazakhstan. Approximately 100 notable participants including KT&G CEO Kyung-man Bang, Almaty Governor Sultangaziev Marat Eleusizovich, and Korean Ambassador to Kazakhstan Taeik Cho were present at the event. KT&G's Kazakhstan factory with three manufacturing facilities has a total gross floor area of 52,000㎡ and an annual production capacity of 4.5 billion cigarette sticks. The factory will be an export outpost and core production base that meets the demands from recently growing Europe, CIS, and the Eurasian markets. The new KT&G Kazakhstan Factory operates based on cutting-edge automated facilities, and strict quality standards conforming to international quality standards are applied to the production process. A precise management process is applied to every step of production, from material procurement to product packaging, to refine quality. With the completion of the factory, KT&G expects a stronger global competitiveness in the local Kazakhstan market as well as in the Eurasian market. The construction of the new factory in Kazakhstan is part of KT&G's CAPEX investment program announced at the "Future Vision Declaration Ceremony" held in January of 2023. KT&G plans to increase the proportion of global revenue to 50% by 2027 through expansion of direct global operations and other measures heightening core business competitiveness With the completion of the new Kazakhstan factory, KT&G successfully set up a "Global Manufacturing Network" across factories in Korea, Indonesia, Russia, Kazakhstan, and other locations. Based on the global production bases, KT&G plans to increase profitability by establishing fully local value chains that directly manages everything from production to operations and distribution. KT&G CEO Kyung-man Bang said that "with the completion of the new Kazakhstan factory, KT&G has laid the foundation of a Global Manufacturing Network that will tow our global competitiveness" further stating that "KT&G will accept challenges in the future and expand our global direct business to increase profitability as well as corporate value, and share the gains with our stakeholders." After the ceremony, KT&G signed a Memorandum of Understanding (MOU) on the "Green Globe Project" that aims to assist in local reforestation efforts. Through the project, the company plans to assist recovery from the June 2023 Abai wildfire. The MOU was formed based on the trilateral cooperation between KT&G the Kazakhstan Ministry of Ecology, Geology and Natural Resources; and the Asian Forest Cooperation Organization (AFoCO), the first international organization dedicated to forestry agendas in Asia. Based on the MOU, the three parties will jointly conduct recovery assistance and prevention, restoration effectiveness monitoring, and other activities. The cooperation will mark the first case of a private enterprise participating in the Abai wildfire recovery project. Young-ah Shim, Director of KT&G's ESG Management Office, stated "through the 'Green Globe Project,' we will provide quick Kazakhstan wildfire recovery assistance and respond proactively to the global climate crisis," also commenting that "in order to fulfill its social responsibility as a global corporate-citizen, KT&G will closely cooperate with nations it operates in to seek a path that is mutually beneficial." KT&G, the manufacturer of the global brand ESSE, is a Korean corporation with a number one position in the Korean electronic cigarette NGP (Next Generation Products), health functional foods, and combustible cigarette markets. As of 2024, KT&G offers 870 brands across 148 countries.
