KT&G Reports Second-Quarter Profit Growth
KT&G reported consolidated revenue of KRW 1.42 trillion ($1.03 billion) and operating profit of KRW 321.5 billion in the second quarter of 2024, up 6.6 percent and 30.6 percent year on year, respectively. The company attributed the growth to the strong pe
KT&G reported consolidated revenue of KRW 1.42 trillion ($1.03 billion) for the second quarter of 2024, with operating profit of KRW 321.5 billion, up 6.6% and 30.6% year-on-year, respectively.
The company attributed the growth to the strong performance of its overseas cigarette business, which posted gains across all key indicators, including revenue, operating profit, and sales volume. Revenue reached a record high of KRW 359.1 billion, up 35.3%. Operating profit surged 139.1% year-on-year.
All three key indicators in KT&G’s domestic next-generation product business also increased: revenue rose 10.8% year-on-year, operating profit climbed 42.8%, and sales volume grew 7.7%. Profitability in its overseas business continued to improve, mainly due to the higher share of heated tobacco stick sales, which served as the main growth driver.
During an earnings call, KT&G said it intends to accelerate its goal of becoming a “global top-tier company” by strengthening core competitiveness and pursuing structural reform. To that end, the company announced in July an agreement with Philip Morris International, under which the two sides will cooperate in filing a premarket tobacco product application in the United States for KT&G’s next-generation products.
KT&G also updated its full-year outlook during the earnings call. The company expects annual consolidated revenue to grow 2.5% to 3%, while operating profit is projected to remain flat, reflecting changes in the business environment for its health functional foods and real estate segments.
KT&G wrote in a press release: “Through the expansion of our overseas business, we achieved growth in revenue and operating profit in the second quarter, delivering solid performance in our core growth areas. We will continue to maximize corporate value by strengthening the competitiveness of our core growth businesses and enhance shareholder value through our first-class shareholder return policy.”
