KT&G reports Q2 results as HNB sales surge 43.5%
According to PR Newswire, KT&G Corp. reported consolidated revenue of KRW 1.34 trillion (US$1.03 billion) for the second quarter ended June 30, 2023, with operating profit of KRW 242.9 billion. Sales volumes of both combustible cigarettes and heated tobac
According to a report by PR Newswire, KT&G Corp. announced its consolidated revenue for the second quarter ending June 30, 2023, at 1.34 trillion KRW (1.03 billion USD), with an operating profit of 242.9 billion KRW.
Sales of combustible cigarettes and heated non-burning (HnB) products both exceeded the same period last year.
HnB sales surged by 43.5%, reaching 3.63 billion sticks, primarily due to the rapid expansion of KT&G's Lil brand globally. In the second quarter, KT&G's overseas heated non-burning category sales reached 2.21 billion sticks, a year-on-year increase of 72.7%.
The company's overseas combustible revenue (including overseas subsidiaries and exports) was 265.5 billion KRW. Export revenue increased by 5.9% to 152.9 billion KRW, mainly due to favorable pricing in key markets such as Latin America and the Middle East. Favorable pricing also improved the profitability of combustible exports, with export operating profit increasing by 42.6%. Overseas combustible sales reached 13.17 billion sticks, a year-on-year increase of 2.6%.
KT&G also shared its plans for share buybacks and cancellations, as well as interim dividends. As part of its three-year shareholder return policy, KT&G plans to repurchase 3.47 million shares (approximately 300 billion KRW) within three months, accounting for 2.5% of its outstanding shares, and will cancel them. This will be the first time in 14 years that KT&G will cancel its own shares.
Additionally, the company announced its first interim cash dividend of 1,200 KRW per share. The interim dividend is expected to be distributed before August 23. Including the interim dividend, the total expected dividend per share will increase by at least 200 KRW compared to last year's 5,000 KRW.
