KT&G Posts Q3 Revenue of KRW 1.64 Trillion and Operating Profit of KRW 415.7 Billion, Also Promising Additional Shareholder Returns
Rhea-AI Summary
KT&G reported strong Q3 2024 financial results with consolidated revenue of KRW 1.636 trillion and operating profit of KRW 415.7 billion, up 2.2% year-on-year. The company's three core businesses achieved record-high quarterly revenue exceeding KRW 1 trillion. The tobacco business revenue reached KRW 1.0478 trillion, up 7.7%, with operating profit growing 23.6% to KRW 333 billion. Overseas cigarette revenue surged 30.5% to KRW 419.7 billion. The company announced a Corporate Value-up Plan targeting 15% ROE by 2027 and additional shareholder returns, including KRW 150 billion share cancellation in 2024.
Positive
- Q3 operating profit increased 2.2% YoY to KRW 415.7 billion
- Tobacco business revenue grew 7.7% with operating profit up 23.6%
- Overseas cigarette revenue surged 30.5% with sales volume up 10.1%
- Announced KRW 150 billion share buyback and cancellation plan
- Set target for 15% ROE by 2027
Negative
- None.
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- Achieved record-high quarterly revenue from the 3 core businesses and the tobacco business, including overseas cigarettes
- Also announced the Corporate Value-up Plan, including an additional KRW 150 billion share cancellation for 2024 and ROE target of
15% by 2027
SEOUL, South Korea, Nov. 7, 2024 /PRNewswire/ -- KT&G Corporation ("KT&G" or the "Company") (KRX:033780), today hosted an earnings conference call and announced its financial results for the third quarter and corporate value-up plan.
KT&G's consolidated revenue for the third quarter was KRW 1.636 trillion, and operating profit KRW 415.7 billion, up
The growth trend centered on the main business continued in the third quarter. Revenue of the 3 core growth businesses, namely overseas cigarettes, Next Generation Products (NGP), and health-functional foods exceeded KRW 1 trillion, achieving the highest-ever quarterly revenue, while the revenue of the tobacco business also reached a record high. Revenue in the tobacco business reached KRW 1.0478 trillion, up
In the tobacco business, growth was particularly strong in overseas cigarettes. In the third quarter, revenue of the overseas cigarette business reached KRW 419.7 billion, up
On the same day, KT&G also announced an upgraded KT&G Corporate Value-up Plan, which aims to achieve
Since the appointment of CEO Kyung Man Bang in March, KT&G has been focusing on strengthening its global-oriented intrinsic competitiveness and upgrading the group's financial structure in order to take a leap to become a 'Global Top-tier' company. In particular, the company has been prioritizing the group's ROE enhancement project, which is based on the three pillars of profitability improvement, asset efficiency, and financial optimization, and plans to achieve '
Under the new corporate value-up plan, shareholder return will also be expanded in 2024. On this day, KT&G's board of directors resolved to repurchase 1.35 million shares with KRW 150 billion of the financial resources secured through the securitization of non-core and low-yield assets and to cancel them in full within the year.
KT&G's spokesperson said, "We are in full swing in creating results by strengthening our business structure centered on our core business and upgrading our financial structure to become a 'Global Top-tier' company." "We will continue to focus our resources and capabilities on our 3 core businesses to strengthen our intrinsic competitiveness and return the fruits of our achievements to our shareholders to achieve true value-up where corporate value and shareholder value grow together."