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Tag: KT&G

  • KT&G Reports Record Q3 Results, Raises Annual Outlook

    KT&G Reports Record Q3 Results, Raises Annual Outlook

    KT&G reported record-high third-quarter results, with revenue up 11.6% year-on-year to KRW 1.83 trillion ($1.3 billion) and operating profit rising 11.4% to KRW 465.3 billion ($321 million), the highest in five years. Strong global cigarette sales — up 24.9% — drove growth, while domestic and next-generation product sales remained solid, the company said.

    KT&G raised its annual revenue and profit guidance to double-digit growth and reaffirmed shareholder returns, including a KRW 6,000 ($4.14) minimum dividend per share and KRW 260 billion ($179 million) in stock buybacks.

    The company continues to move forward with plans to expand its nicotine pouch business through a joint acquisition of Another Snus Factory with Altria by year-end.

  • KT&G Announces Additional Share Returns, Increased Annual Dividend

    KT&G Announces Additional Share Returns, Increased Annual Dividend

    KT&G announced stronger shareholder return measures and reaffirmed its global growth trajectory yesterday (September 23) at its “2025 CEO Investor Day.” The company committed to a minimum annual dividend of 6,000 KRW ($4.26), a 600 KRW ($0.43) increase from last year, alongside an additional 260 billion KRW ($184.6 million) in share repurchases and cancellations—funded by the sale of non-core assets. This represents a 171% increase in shareholder returns year-over-year. KT&G has already canceled 10.4% of its shares since 2023 and aims to build further value through flexible capital deployment as global business performance continues to accelerate, supported by premiumization, cost optimization, and fully localized value chains. The company is targeting double-digit growth in both operating profit and revenue in 2025, following five consecutive quarters of “triple growth” across revenue, profit, and sales volume.

    In parallel, KT&G disclosed a comprehensive MOU with Altria Group, Inc. to collaborate across nicotine and non-nicotine categories. KT&G CEO Kyung-man Bang emphasized that the combined strategy of strong shareholder returns and global expansion through strategic partnerships positions the company for sustainable long-term growth.

  • Altria and KT&G Partner in Pursuit of Modern Nicotine Growth

    Altria and KT&G Partner in Pursuit of Modern Nicotine Growth

    Altria Group, Inc. and KT&G Corporation announced they have signed a non-binding global collaboration memorandum of understanding (MOU) “to pursue joint growth opportunities in modern oral nicotine, non-nicotine wellness products, and operational efficiency in traditional tobacco.” The partnership builds on Altria’s long-term goal of expanding into adjacent international categories beyond cigarettes, first outlined in 2023.

    The companies said their complementary strengths would accelerate innovation and market expansion. As an initial step, an Altria subsidiary will acquire an ownership interest in Sweden-based Another Snus Factory (ASF), concurrent with KT&G’s purchase of the company, giving both parties a foothold in the LOOP nicotine pouch brand. They also plan to evaluate ways to expand Altria’s on! and on! PLUS oral nicotine products to select markets.

    Beyond nicotine, the collaboration extends into the U.S. wellness and energy space through Altria and KT&G’s Korea Ginseng Corporation, which will jointly explore new product opportunities. The two firms will also work to improve operational efficiency in traditional tobacco businesses, with the aim of strengthening competitiveness and creating transferable capabilities for future international smoke-free ventures.

  • KT&G Names First-Ever Master Craftsmen

    KT&G Names First-Ever Master Craftsmen

    KT&G Corp. introduced a master craftsman system, appointing three veteran engineers as its first honorees. At a ceremony today (August 19), the company named Cho Young-il (cigarette machinery), Shin Dong-guk (packaging machinery), and Kang Tae-hoon (electronics and systems) as inaugural master craftsmen.

    KT&G said the program aims to preserve technical expertise, mentor younger engineers, and boost manufacturing efficiency through process innovation and new technologies.

  • KT&G Posts Strong Q2 Results, Raises Dividend Amid Global Growth

    KT&G Posts Strong Q2 Results, Raises Dividend Amid Global Growth

    KT&G reported strong second-quarter earnings with revenue up 8.7% Y-Y to KRW 1.55 trillion ($1.1 billion) and operating profit rising 8.6% to KRW 349.8 billion ($252 million). The gains mark the third consecutive quarter of growth and a new milestone, with first-half revenue exceeding KRW 3 trillion ($2.2 billion) for the first time.

    Driven by global demand for its tobacco products, especially in Asia and Latin America, KT&G also saw strong results in its next-generation products and health food segments. Global cigarette sales rose 9.1%, reaching 16.7 billion sticks.

    The company raised its interim dividend to KRW 1,400 ($1.008) per share and announced a KRW 300 billion ($216 million) share buyback and cancellation starting August 8, part of its ongoing KRW 3.7 trillion ($2.7 billion) Value Up plan to boost shareholder returns.

    KT&G reaffirmed its goal of achieving double-digit profit growth for 2025.

  • KT&G Launches ESSE in Germany, Marking Major European Expansion

    KT&G Launches ESSE in Germany, Marking Major European Expansion

    KT&G has officially launched its flagship ESSE superslim cigarette brand in Germany, signaling the start of a full-scale European expansion for the South Korean company. Partnering with German distributor Hauser, the company introduced ESSE Blue and ESSE Red in key cities including Berlin, Dortmund, and Munich.

    “ESSE has already been recognized as a competitive, stylish product in many countries, and has grown to become the global No. 1 superslim brand,” a KT&G spokesperson said. “We will continue to expand our influence in Germany based on the distinguished features of our product.”

    First launched in 1996, ESSE has grown to reach around 90 global markets, with major success in the Middle East, Russia, Southeast Asia, and Latin America. In 2024, the brand sold 430 billion sticks globally, claiming one-third of the global superslim segment.

  • KT&G Rumored to be Entering Nicotine Pouch Market

    KT&G Rumored to be Entering Nicotine Pouch Market

    KT&G Corp. is in talks to acquire a leading nicotine pouch company in Northern Europe for $200 million, according to The Korea Economic Daily. The belief is that South Korea’s dominant tobacco and ginseng producer is exploring new growth drivers amid tightening regulations and a shrinking traditional cigarette market, investment banking sources said this week.

    If completed, the deal would mark KT&G’s first overseas M&A since it acquired a 60% stake in Indonesian tobacco maker Trisakti Purwosari Makmur in 2011 for about $90 million, the newspaper said.
    According to reports, Flashlight Capital Partners, KT&G’s activist investor, urged the company to emulate global peers such as Philip Morris and accelerate its entry into new segments. PMI got into the nicotine pouch market in 2022 when it purchased Swedish Match, the maker of Zyn, for $16 billion. KT&G declined to comment on the acquisition talks, saying no decision has been finalized.

  • Esse Cigarettes Power KT&G’s Global Push

    Esse Cigarettes Power KT&G’s Global Push

    KT&G’s ultra-slim cigarette brand, Esse, continues to enjoy strong and steady demand in the Middle East and Central Asia — emerging as one of South Korea’s fastest-growing processed food exports in the first quarter of this year, according to the company.

    According to data released by the Ministry of Agriculture, KT&G’s cigarette exports rose 14.5% year-on-year during the January–March period, ranking second in export growth behind ramyeon, which saw a 27.3% increase.

    “In the Gulf Cooperation Council (GCC) region, including the UAE, the Korean Wave has played a major role in boosting interest in slim cigarettes made in Korea,” said an official from the Agriculture Ministry. “At the same time, exports to Commonwealth of Independent States (CIS) countries, such as Russia and Mongolia, have also grown, fueling further momentum.”

    KT&G’s cigarette exports to GCC countries reached $49 million in the first quarter, marking an 83.6 percent year-on-year increase. Exports to CIS nations more than doubled to $29 million over the same period. Among these markets, Mongolia stood out, where KT&G’s localization strategies have helped the company capture a market-leading share of over 50%, the company said.

    Last year, KT&G posted 1.45 trillion won ($986 million) in overseas sales, up 28% from the previous year, driven largely by strong cigarette demand. Its cigarette exports alone reached 58.6 billion won ($39.9 million).

    Indonesia remains KT&G’s largest export destination, while Central Asian countries such as Uzbekistan are rapidly emerging as key growth markets. KT&G sold 270 million cigarettes in Uzbekistan last year, ahead of launching a local office there in January. The company has also secured the top market share in Tajikistan and third place in Kazakhstan.

    To meet growing global demand, KT&G is building new manufacturing facilities in Kazakhstan and Indonesia, set to be completed by 2026.  

  • KT&G Opens Expanded Plant in Turkiye

    KT&G Opens Expanded Plant in Turkiye

    South Korea’s leading tobacco company, KT&G, announced the completion of additional manufacturing facilities in Turkiye as part of a strategy to solidify its position as a global top-tier company. This is part of the company’s 2023 initiative to increase global sales by 50%.

    The expansion in Turkiye added two new production facilities to the factory, increasing its total ground area by approximately 50% to 25,000 square meters. With the upgrades, the company’s four facilities can now produce up to 12 billion cigarettes annually, enabling KT&G to meet growing demand in North Africa and Latin America.

    “By strengthening our production capabilities in Turkiye, we are taking significant steps toward becoming an unmatched global leader,” KT&G’s CEO Bang Kyung-man said in a statement. “We will continue to focus on our three core businesses while enhancing our competitive edge.”

    KT&G has been expanding its global footprint since establishing its first overseas factory in Turkiye in 2008. The company is currently working on additional projects, including new factories in Indonesia and a facility in Kazakhstan, set to be completed this year.

  • KT&G Announces New Uzbekistan Subsidiary

    KT&G Announces New Uzbekistan Subsidiary

    South Korea’s leading tobacco manufacturer, KT&G, has established a new subsidiary in Uzbekistan to strengthen its international market presence. This strategic move follows the opening of a local office in 2023, aimed at exporting customized tobacco products under the Esse brand to cater to regional preferences.

    In the previous year, KT&G achieved significant sales milestones, distributing 270 billion cigarettes across 120 countries. This expansion into Uzbekistan is part of the company’s broader strategy to tap into emerging markets and diversify its global portfolio.

    The establishment of the Uzbekistan subsidiary underscores KT&G’s commitment to adapting its product offerings to meet local tastes and regulatory environments. By focusing on customized products, the company aims to enhance its competitiveness and brand recognition in the Central Asian region.