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KT&G profit up for third straight quarter on overseas tobacco sales

Published: 07 Aug. 2025, 19:24 Updated: 07 Aug. 2025, 19:26

KIM JU-YEON
[email protected]

Pictured is the logo of KT&G, a Korean tobacco and ginseng company. [KT&G]

Tobacco and ginseng firm KT&G's second quarter profit surged more than 8 percent on year, boosted by solid overseas tobacco sales and the successful launch of a new premium line.

Operating profit rose 8.6 percent to 349.8 billion won ($253 million) in the April-June period from the previous year, and revenue jumped 8.7 percent to1.55 trillion won during the same period, KT&G announced Thursday. This marked the firm's third consecutive quarter of profit and revenue growth as well as the first time that first-half revenue exceeded 3 trillion won.

KT&G attributed the gains to full localization of global value chains and its transition into a company-in-company system. Price hikes, the launch of premium range products as well as new items under the ESSE brand overseas also drove growth.

The firm's core tobacco segment led the growth. The unit's revenue rose 10 percent year-over-year to 1.09 trillion won while operating profit climbed 1.6 percent to 321.8 billion won.

Notably, the global cigarette business's overseas revenue went up 30.6 percent year-over-year to 469 billion won, with adjusted operating profit, excluding last year’s doubtful account refunds, surging 51.1 percent. Global shipment volume increased 9.1 percent to a quarterly record of 16.7 billion sticks.

“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,” a KT&G spokesperson said through the firm's news release.

At home, the firm's Next Generation Product division accounted for 45.8 percent of the domestic market, boosted by increased sales of its heat-not-burn product, “lil AIBLE.” Global stick sales increased year-on-year by 4.2 percent.

KT&G also increased its interim dividend payout by 200 won, to 1,400 won per share.

The firm will also repurchase and cancel 300 billion won worth of shares starting Friday. It plans to fund further buybacks in the second half of 2025 by selling noncore assets including real estate.

KT&G will review continuing to raise its dividend in line with the growth of its share price and profit, the company said.

“We will continue to advance our business with a goal of achieving double-digit annual operating profit growth this year,” the KT&G spokesperson said. “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.”

BY KIM JU-YEON [[email protected]]