KT&G Reports Robust Overseas Performance

KT&G Corp. reported consolidated revenue of KRW1.29 trillion ($942.27 million) and operating profit of KRW236.6 billion for the first quarter ended March 31, 2024.

The South Korean cigarette manufacturer’s overseas and domestic next-generation product (NGP) and overseas cigarette sectors sustained robust performances in the quarter, extending their trend from the previous year.

Overseas NGP stick volume grew by 14.7 percent, reaching 2.11 billion sticks.

KT&G also achieved its third consecutive quarters of revenue growth in the overseas cigarette business, driven by strategic pricing in core growth markets such as Indonesia. KT&G’s first-quarter overseas cigarette revenue recorded KRW291.8 billion, up 10.1 percent from the comparable 2023 quarter.

While the company delivered notable results in core business areas, its consolidated revenue and operating profit for the first quarter decreased compared to the same period last year. This downturn was mainly driven by rising manufacturing costs, the completion of large-scale real estate development projects and reduced revenue from the health functional food sector amid lower consumer spending.

“KT&G is committed to strengthening its competitiveness in core business areas and driving a business transformation aimed at making a significant leap forward to become a ‘global top-tier company,’” KT&G wrote in a press release.

“Despite a number of headwinds, such as inflation-driven manufacturing cost pressure and economic recession, KT&G is striving to achieve a business turnaround in the second half of the year by strengthening global competitiveness and pursuing operational efficiency optimization.”