KT&G’s Income Down on Weaker Exports

KT&G’s net income declined 15.5 percent to KRW990 billion ($825,52 million) on weaker exports and other adverse developments, according to the company’s annual earnings release. Operating profit declined to KRW1.32 trillion from KRW1.47 trillion.

Sales grew 3.4 percent to an all-time high of KRW5.23 trillion driven by growth of the company’s heat-not-burn and overseas cigarette businesses, which offset decreases in KT&G’s real estate and cigarette export units.

In the fourth quarter of last year, KT&G’s bottom line plunged 63.7 percent on-year to KRW111.5 billion. Sales declined 2.3 percent to KRW1.2 trillion, with operating income tumbling 24.5 percent to KRW264.9 billion.

The company said it sold 38.8 billion cigarettes in overseas markets last year, down 7.4 percent from the prior year, with domestic sales edging down 1.3 percent to 41.1 billion cigarettes.

Despite the global spread of Covid-19, KT&G said it made forays into 20 new countries last year, with its overseas markets totaling 120 nations.

The company voiced optimism that its exports will gradually rebound down the road once global supply chain bottlenecks ease.