KT&G posted record first-half revenue, driven by strong growth in its overseas tobacco business, and raised its earnings outlook for the full year.
The company said on Aug. 6 that second-quarter revenue reached 1.70 trillion won, while operating profit increased to 414.5 billion won. Compared with the same period a year earlier, revenue rose 9.9% and operating profit grew 18.5%.
KT&G also revised its full-year guidance upward. The company raised its projected annual revenue growth rate to 5–7% from a previous forecast of 3–5%, while expected operating profit growth was increased to 10–13% from 6–8%.
The tobacco business remained the primary earnings driver, generating revenue of 1.22 trillion won and operating profit of 382.5 billion won during the quarter.
Revenue from overseas cigarette operations rose 18.9% year over year to 557.7 billion won. Operating profit from the business increased 45.6%, supported by higher sales volumes and improved selling prices.
In South Korea, KT&G maintained a cigarette market share of 67.9% during the first half.
The next-generation product (NGP) business also continued to expand. NGP revenue increased 23.8% from a year earlier to 242.7 billion won, driven by strong sales of the lil AIBLE 3.0 heated tobacco device. The company's domestic NGP market share reached 48.2%.
KGC, KT&G's health functional food subsidiary, reported operating profit of 10.0 billion won, up 61.3% from the previous year, supported by higher domestic sales.
KT&G also announced enhanced shareholder returns. Its board of directors approved an interim dividend of 2,000 won per share, up from 1,400 won a year earlier.
The company said it will proceed with previously announced plans to repurchase and retire treasury shares during the second half of the year. It also plans to unveil a new mid- to long-term shareholder return policy, including additional dividend measures, in the fourth quarter.
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