KT&G reports record revenue for 2020 despite pandemic
KT&G's revenue reported a record 5 trillion won ($4.47 billion) in revenue as it sold 90 billion cigarettes at home and abroad.
KT&G, which is behind the lil heat-not-burn cigarette, posted 1.17 trillion won in consolidated net profit, up 13.1 percent from a year earlier, according to its preliminary report released Thursday. Its fourth-quarter net profit rose 163.4 percent on year to 307.71 billion won.
The company reported a record 5.3 trillion won in consolidated annual revenue last year, up 6.8 percent. Its fourth-quarter revenue was up 11.9 percent compared to the same period a year earlier to 1.34 trillion won.
“Exports to key markets have recovered, and sales in the United States have increased from expanded distribution channels,” said KT&G in a statement.
KT&G’s key markets include the Middle East countries. It exports to 103 countries in total.
Domestically, the company has sold a total of three million lil devices since they were introduced in 2017. Its market share in Korea surpasses 60 percent, but the market share of its e-cigarettes stands at 34.3 percent.
The company also generated sales by unloading properties in Suwon, Gyeonggi where it is building apartment complexes. Revenue from real estate jumped 56 percent last year to 654.6 billion won.
Korea Ginseng Corporation (KGC), a KT&G subsidiary, reported 1.33 trillion won in revenue, down 5 percent on year. Its net profit was down 25.7 percent on year to 109.7 billion won, as duty-free sales declined due to travel restrictions. Its revenue domestically inched down 6.7 percent on year, but its overseas sales rose 11 percent.
KGC is well-known for Cheong Kwan Jang ginseng products.
KT&G raised its dividend to 4,800 won per share from the previous 4,400 won.
“Despite the uncertainties raised by Covid-19, the company has achieved the highest revenue and [operating] profit from growth in cigarette exports and real estate businesses, as well as continued [domination] of the domestic market,” said Baek Bok-in, KT&G president, in a statement, vowing to raise its competitiveness in the global market.
BY JIN MIN-JI [firstname.lastname@example.org]