KT&G raised its full-year guidance after reporting record first-half revenue and a fourth consecutive quarter of double-digit profit growth. Second-quarter revenue increased 9.9% year over year to 1.7 trillion won ($1.2 billion), while operating profit rose 18.5% to 414.5 billion won ($290 million). First-half revenue reached a record 3.4 trillion won ($2.4 billion), prompting the company to increase its 2026 outlook to 5%-7% revenue growth and 10%-13% operating profit growth.
Growth was driven by the tobacco business, where overseas revenue climbed 18.9% and operating profit surged 45.6% on higher sales volumes and price increases. KT&G also reported a 23.8% increase in next-generation products revenue, led by heated tobacco products, while maintaining a 67.9% share of South Korea’s cigarette market and a 48.2% share of the domestic heated tobacco segment. The company also increased its interim dividend to 2,000 won ($1.40) per share, reaffirmed plans for additional share buybacks and cancellations, and said it will introduce a new heated tobacco product in the second half of the year.
