KT&G Corp. reported consolidated revenue of KRW1.42 trillion ($1.03 billion) and operating profit of KRW321.5 billion for its second quarter of 2024, marking a year-over-year growth rate of 6.6 percent and 30.6 percent, respectively.
The company attributed the growth to robust performance in its overseas cigarette business, which achieved growth in all key metrics, including revenue, operating profit and sales volume. Revenue reached an all-time high of KRW359.1 billion, reflecting a growth rate of 35.3 percent. Operating profit soared 139.1 percent year-over-year.
KT&G’s domestic next-generation product business also grew in in all three key metrics: revenue increased by 10.8 percent, operating profit by 42.8 percent and sales volume by 7.7 percent year-over-year. The overseas business continued to improve its profitability, driven by an increased proportion of stick sales volume, which is the key growth driver of the business.
During an earnings call, KT&G said it intends to accelerate progress toward its goal of becoming “a global top-tier company” by strengthening fundamental competitiveness and structural reforms. To that end, the company in July announced an agreement with Philip Morris International under which the partners will collaborate on premarket tobacco product application submissions for KT&G’s new next-generation products in the United States.
KT&G also updated its full-year outlook during the earnings conference call. The company projects the annual consolidated revenue to grow between 2.5 percent and 3 percent, with operating profit expected to remain flat, reflecting changes in the business environment in the company’s health functional food and real estate sectors.
“We achieved growth in both revenue and operating profit in the second quarter by expanding our overseas business, which delivered 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 best-in-class shareholder return policy,” KT&G wrote in a press release.
