KT&G Net Profit Jumps by a Third

KT&G’s quarterly net profit jumped 29 percent from a year earlier on increased exports and a strong dollar, reports the Yonhap News Agency.

Net profit for the three months ended in September rose to KRW463.14 billion ($325 million) from KRW359.58 billion during the same period of last year, the company said in a statement. 

According to the company, the bottom line was boosted by increased sales of heat-not-burn products in the domestic market and increased overseas sales amid a weak won against the dollar.

The dollar rose to an average of KRW1,338 in the third quarter from KRW1,157 a year earlier, according to the Bank of Korea. 

Operating profit fell 2.7 percent to KRW405.61 billion during the quarter from KRW417.03 billion a year ago. Sales were up 8.5 percent to KRW1.62 trillion from KRW1.49 trillion during the cited period. 

Domestically, KT&G sold 11.05 billion cigarettes in the third quarter, down 0.4 percent from a year earlier. The company held a 65 percent share of the local cigarette market. 

Overseas sales jumped 30 percent to 12.2 billion cigarettes in the September quarter from 9.4 billion a year ago, driven by rising demand from emerging markets. 

KT&G earns 90 percent of its sales from cigarettes and 10 percent from heat-not-burn products.

From January to September, net income climbed 21 percent to KRW1.06 trillion from KRW878.58 billion in the same period of last year.