KT&G posted record results in 2020 due to remarkable growth in its global markets. On Feb. 4, the South Korean company announced an operating profit of KRW1.17 trillion ($1.05 billion) on sales of KRW5.3 trillion, up 7.5 percent and 6.8 percent, respectively over the previous year.
KT&G attributes its performance to a rise in sales in overseas markets. In early 2020, KT&G the company entered the Middle East by signing a contract worth KRW2.2 trillion for seven years with a local tobacco importer. The expansion of its distribution network pushed up sales in the United States.
KT&G made inroads into 23 countries last year, increasing the number of its export markets to 103 countries. It also started exporting e-cigarettes to Russia and Japan by forging a partnership with Philip Morris International.
As a result of brisk overseas market development, the company sold more than 100 million units in annual sales in five countries including Cameroon, Israel, and Guatemala. It sold 48 billion cigarettes worth krw986.2 billion in the global market alone last year.
Domestic cigarette sales increased by 2.5 percent to 41.6 billion sticks in 2020, a development that KT&G attributes to Covid-19 related overseas travel restrictions, among other factors. South Korea’s market for heat-not-burn remained stable during 2020.
KT&G’s 2020 fourth quarter and annual earnings release is available for download here.