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KT&G profit grows on strong overseas tobacco demand

Published: 06 Feb. 2025, 17:26 Updated: 06 Feb. 2025, 17:32

CHO YONG-JUN
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KT&G

KT&G's profit edged up in 2024 as the Korean tobacco company's products picked up speed internationally.

The firm reported a 1.5 percent rise in operating profit to 1.19 trillion won ($818 million) for the year on Thursday, coming slightly below the 1.21 trillion won estimate of market tracker FnGuide. Sales came in at 5.9 trillion won, a 0.8 percent on-year increase that slightly outperformed expectations.

KT&G, like industry peers that have heavily invested in overseas expansion this year, has benefited from steady demand for tobacco around the globe, having announced a large investment in a new Asia and Middle East production hub last October.

“KT&G saw meaningful growth of revenue and operating profit that can be attributed to the growth [of] the tobacco business,” the company said in a press release Thursday.

Operating profit at the company’s tobacco business grew 10.7 percent on year to 1.08 trillion won, bolstered by a 10.3 percent rise in overseas tobacco sales, which brought the company to its highest yearly sales to date. Annual revenue of the overseas tobacco business also rose 25 percent to 1.45 trillion won during the period while operating profit surged 84.2 percent.

Sales of heat-non-burn cigarette increased 7.7 domestically during the period. Drops at its health functional food business — namely its ginseng products — in operating profit and revenue weren't drastic enough to offset the strong tobacco performance.

“Despite the heightened uncertainty in both domestic and global markets in 2025, KT&G will continue the upward performance by strengthening our fundamental competitiveness based on our global business,” the company said.

Operating profit for the quarter through December rose 5.3 percent to 208.5 billion won while sales jumped 8 percent to 1.56 trillion won.

The company also said that it would repurchase at least 300 billion won of shares within 2025 and cancel 360 billion won worth of treasury shares, approximately 2.5 percent of its total issued shares, immediately.

BY CHO YONG-JUN [[email protected]]