KT&G Net Profit Rises by One-Third
According to Yonhap News, KT&G's quarterly net profit rose 29% year-on-year thanks to higher exports and a stronger U.S. dollar. In a statement, the company said net profit for the three months through September increased to 463.14 billion won ($325 milli
According to the Korean News Agency, KT&G's quarterly net profit increased by 29% year-on-year due to increased exports and a stronger dollar.
The company stated in a statement that its net profit for the three months ending in September rose from 359.58 billion won in the same period last year to 463.14 billion won (325 million USD).
According to the company, the increase in sales of heated tobacco products in the domestic market and increased overseas sales boosted profits amid a weak Korean won against the dollar.
According to data from the Bank of Korea, the average dollar exchange rate rose from 1,157 won in the same period last year to 1,338 won in the third quarter.
Operating profit for the quarter fell by 2.7% from 417.03 billion won a year ago to 405.61 billion won. Sales increased by 8.5% from 1.49 trillion won during the reference period to 1.62 trillion won.
In the domestic market, KT&G sold 11.05 billion cigarettes in the third quarter, a decrease of 0.4% year-on-year. The company holds a 65% share of the local cigarette market.
Driven by growing demand in emerging markets, overseas sales in the September quarter increased by 30% to 12.2 billion cigarettes from 9.4 billion a year ago.
90% of KT&G's sales come from cigarettes, while 10% come from heated tobacco products.
From January to September, net profit increased by 21% year-on-year from 878.58 billion won to 1.06 trillion won.
