KT&G reported record quarterly revenue of 1.91 trillion won ($1.4 billion) for the three months ended Sept. 30, up 4.3% year over year, while operating profit increased 13.9% to 530.1 billion won ($392.3 million). The South Korean tobacco company expects full-year revenue of 7 trillion won ($5.2 billion) and operating profit of 1.5 trillion won ($1.1 billion), compared with 6.58 trillion won ($4.9 billion) and 1.35 trillion won ($999 million), respectively, in 2025. Its tobacco business generated revenue of 1.31 trillion won ($969 million), up 6%, and operating profit of 425.5 billion won ($314.9 million), up 14.4%. Overseas cigarette sales recorded a 10th consecutive quarter of growth, with quarterly records for volume and revenue, while KT&G maintained its leading position in South Korea’s heated tobacco market.
KT&G plans to expand cigarette sales into about 30 additional countries, increase premium sales of brands such as ESSE, and expand its direct overseas heated tobacco operations. Its LOOP nicotine pouch brand aims to reach about 70 countries by 2030. The company also expects to save more than 550 billion won ($407 million) over four years through global production optimization, including a new Indonesian plant. KT&G will increase its annual dividend by 33.3% to 8,000 won ($5.92) per share and raise its payout ratio to at least 75% by 2030. Beginning next year, it plans to buy back and cancel 1.2 trillion won ($888 million) in shares over four years. Including dividends, total shareholder returns are expected to exceed 5 trillion won ($3.7 billion) during that period.