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KT&G reports highest quarterly revenue, operating profit in Q3

Published: 06 Nov. 2025, 18:10 Updated: 06 Nov. 2025, 20:02

YOON SO-YEON
[email protected]

KT&G logo [KT&G]

KT&G reported its highest quarterly revenue and operating profit for the third quarter of 2025, crediting its "core business competitiveness and profitability-focused growth strategy."

The Korean tobacco company reported on Thursday 1.83 trillion won ($1.26 billion) in revenue for the July-September period, an 11.6-percent on-year increase, as well as 465.3 billion won in operating profit, an 11.4-percent on-year increase.

KT&G's staple cigarette business segment buoyed the growth with 1.23 trillion won in revenue, up 17.6 percent on year, and 371.8 billion won in operating profit, up 11 percent on year. The company also reported rosy figures for its global businesses, with 524.2 billion won revenue from overseas cigarette sales, up 24.9 percent on year — the first time the company has surpassed 500 billion won in a quarter.

Based on the solid results, KT&G raised its annual revenue and operating profit target from previous forecasts of 5 to 7 percent and 6 and 8 percent, respectively, to “double-digit growth."

"The company achieved record quarterly revenue and operating profit in the third quarter through the sophistication of the global cigarette business’s fully locally-integrated structure," said KT&G Chief Financial Officer Lee Sang-hak.

"The company will secure future growth momentum centered on modern products and NGP [...] while reinforcing core competitiveness to improve corporate and shareholder value.”

During KT&G's Investor Day session in September, CEO Bang Kyung-man revealed the company's renewed shareholder return distribution principles to utilize excess capital to maximize corporate and shareholder value. Major agendas included total shareholder returns of 100 percent or higher; dividend payout ratios of 50 percent or higher; a lower limit dividend yield; and elastic share repurchases throughout the year, given that share prices are underrated relative to long-term intrinsic value.

BY YOON SO-YEON [[email protected]]