KT&G reported record financial performance for 2025, with fourth-quarter consolidated revenue rising 10.1% year over year to KRW 1.7 trillion ($1.2 billion) and operating profit increasing 17.1% to KRW 248.8 billion ($169.2 million). In financials released today (Feb. 5), the company said full-year revenue grew 11.4% to a record KRW 6.58 trillion ($4.5 billion), while operating profit climbed 13.5% to KRW 1.4 trillion ($918 million), or KRW 1.4 trillion ($965.6 million) on an adjusted basis excluding one-time labor costs. The company attributed the results to structural reforms and global competitiveness initiatives implemented under CEO Kyung-man Bang, with its global cigarette business delivering record revenue, volume, and operating profit. International cigarette revenue rose 14.6% to KRW 1.9 trillion ($1.3 billion) and, for the first time, accounted for 54.1% of total cigarette revenue, supported by volume growth and strategic pricing actions.
KT&G’s next-generation product (NGP) segment also expanded, with revenue increasing 13.5% to KRW 890.1 billion ($605 million) and stick volumes reaching 14.8 billion units. The company signaled a broader NGP strategy beyond heated tobacco, including portfolio diversification into nicotine pouches following its acquisition of Another Snus Factory. Management emphasized that NGP expansion is intended to complement core combustible operations while strengthening long-term tobacco category competitiveness across domestic and international markets.
Looking ahead, KT&G outlined 2026 growth targets supported by a KRW 2.4 trillion ($1.6 billion) capital investment program aimed at expanding global manufacturing capacity, including new facilities in Kazakhstan and Indonesia. The company expects these investments to support cost reductions, pricing optimization, and business model diversification through OEM and licensing partnerships. KT&G is targeting revenue growth of 3% to 5% and operating profit growth of 6% to 8% while maintaining a total shareholder return of at least 100%, supported by a dividend payout ratio of 50% or higher and potential share repurchases.