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KT&G's Strong Global Cigarette Business Tows Q1 Revenue and Operating Profit Growth

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KT&G (KTCIY) reported strong Q1 2025 financial results, with consolidated revenue reaching 1.491 trillion KRW (up 15.4% YoY) and operating profit of 285.6 billion KRW (up 20.7% YoY). The company's global cigarette business achieved "triple growth" in operating profit, sales volume, and revenue for four consecutive quarters, with global business revenue increasing 53.9% to 449.1 billion KRW and operating profit surging 312.5% YoY.

The company's NGP business saw 6.5% YoY revenue growth in Korea, while the Health Functional Foods division grew 1.9% YoY. KT&G is executing a 3.7 trillion KRW shareholder return program (2024-2027), including cash dividends and stock repurchasing. In Q1 2025, the company cancelled treasury stocks worth 360 billion KRW, representing 2.5% of outstanding shares.

KT&G (KTCIY) ha riportato risultati finanziari solidi nel primo trimestre del 2025, con ricavi consolidati che hanno raggiunto 1,491 trilioni di KRW (in aumento del 15,4% su base annua) e un utile operativo di 285,6 miliardi di KRW (in crescita del 20,7% su base annua). Il business globale delle sigarette ha registrato una "tripla crescita" in utile operativo, volume di vendita e ricavi per quattro trimestri consecutivi, con ricavi globali aumentati del 53,9% a 449,1 miliardi di KRW e un utile operativo cresciuto del 312,5% su base annua.

Il settore NGP dell'azienda ha visto una crescita dei ricavi del 6,5% su base annua in Corea, mentre la divisione Prodotti Alimentari Funzionali per la Salute è cresciuta dell'1,9% su base annua. KT&G sta attuando un programma di ritorno agli azionisti da 3,7 trilioni di KRW (2024-2027), che include dividendi in contanti e riacquisto di azioni. Nel primo trimestre del 2025, la società ha cancellato azioni proprie per un valore di 360 miliardi di KRW, pari al 2,5% delle azioni in circolazione.

KT&G (KTCIY) reportó sólidos resultados financieros en el primer trimestre de 2025, con ingresos consolidados que alcanzaron 1,491 billones de KRW (un aumento del 15,4% interanual) y un beneficio operativo de 285,6 mil millones de KRW (un incremento del 20,7% interanual). El negocio global de cigarrillos de la compañía logró un "crecimiento triple" en beneficio operativo, volumen de ventas e ingresos durante cuatro trimestres consecutivos, con ingresos globales que aumentaron un 53,9% hasta 449,1 mil millones de KRW y un beneficio operativo que se disparó un 312,5% interanual.

El negocio NGP de la compañía experimentó un crecimiento de ingresos del 6,5% interanual en Corea, mientras que la división de Alimentos Funcionales para la Salud creció un 1,9% interanual. KT&G está ejecutando un programa de retorno a accionistas de 3,7 billones de KRW (2024-2027), que incluye dividendos en efectivo y recompra de acciones. En el primer trimestre de 2025, la empresa canceló acciones en tesorería por un valor de 360 mil millones de KRW, lo que representa el 2,5% de las acciones en circulación.

KT&G (KTCIY)는 2025년 1분기에 견고한 실적을 보고했으며, 연결 매출은 1조 4,910억 원으로 전년 동기 대비 15.4% 증가했고 영업이익은 2,856억 원으로 20.7% 상승했습니다. 회사의 글로벌 담배 사업은 영업이익, 판매량, 매출에서 4분기 연속 '트리플 성장'을 달성했으며, 글로벌 사업 매출은 53.9% 증가한 4,491억 원, 영업이익은 전년 동기 대비 312.5% 급증했습니다.

NGP 사업부는 한국에서 매출이 전년 대비 6.5% 성장했으며, 건강기능식품 부문은 1.9% 성장했습니다. KT&G는 현금 배당과 자사주 매입을 포함하는 3.7조 원 규모의 주주환원 프로그램(2024-2027년)을 실행 중이며, 2025년 1분기에는 3,600억 원 상당의 자사주를 소각해 발행주식의 2.5%에 해당합니다.

KT&G (KTCIY) a publié de solides résultats financiers pour le premier trimestre 2025, avec un chiffre d'affaires consolidé atteignant 1,491 billion KRW (en hausse de 15,4 % en glissement annuel) et un bénéfice d'exploitation de 285,6 milliards KRW (en hausse de 20,7 % en glissement annuel). L'activité mondiale de cigarettes de l'entreprise a enregistré une "croissance triple" du bénéfice d'exploitation, du volume des ventes et du chiffre d'affaires pendant quatre trimestres consécutifs, avec un chiffre d'affaires mondial en hausse de 53,9 % à 449,1 milliards KRW et un bénéfice d'exploitation en forte hausse de 312,5 % en glissement annuel.

Le secteur NGP de l'entreprise a connu une croissance de 6,5 % de ses revenus en Corée, tandis que la division des aliments fonctionnels pour la santé a progressé de 1,9 % en glissement annuel. KT&G met en œuvre un programme de retour aux actionnaires de 3,7 billions KRW (2024-2027), comprenant des dividendes en espèces et des rachats d'actions. Au premier trimestre 2025, la société a annulé des actions propres d'une valeur de 360 milliards KRW, représentant 2,5 % des actions en circulation.

KT&G (KTCIY) meldete starke Finanzergebnisse für das erste Quartal 2025, mit einem konsolidierten Umsatz von 1,491 Billionen KRW (plus 15,4 % im Jahresvergleich) und einem operativen Gewinn von 285,6 Milliarden KRW (plus 20,7 % im Jahresvergleich). Das globale Zigarettengeschäft des Unternehmens erzielte für vier aufeinanderfolgende Quartale ein "dreifaches Wachstum" bei operativem Gewinn, Verkaufsvolumen und Umsatz, wobei der globale Umsatz um 53,9 % auf 449,1 Milliarden KRW stieg und der operative Gewinn um 312,5 % im Jahresvergleich zunahm.

Das NGP-Geschäft des Unternehmens verzeichnete in Korea ein Umsatzwachstum von 6,5 % im Jahresvergleich, während die Sparte Gesundheitsfunktionelle Lebensmittel um 1,9 % im Jahresvergleich wuchs. KT&G führt ein 3,7 Billionen KRW umfassendes Aktionärsrückkaufprogramm (2024-2027) durch, das Bardividenden und Aktienrückkäufe umfasst. Im ersten Quartal 2025 hat das Unternehmen eigene Aktien im Wert von 360 Milliarden KRW storniert, was 2,5 % der ausstehenden Aktien entspricht.

Positive
  • Consolidated revenue grew 15.4% YoY to 1.491 trillion KRW
  • Operating profit increased 20.7% YoY to 285.6 billion KRW
  • Global cigarette business achieved 312.5% operating profit growth and 53.9% revenue growth
  • Implementing substantial shareholder return program of 3.7 trillion KRW (2024-2027)
  • Completed treasury stock cancellation worth 360 billion KRW in Q1 2025
Negative
  • Domestic economy showing slowdown signs
  • Facing hostile business conditions including sharp rise in foreign exchange rates

– Q1 consolidated revenue stands at 1.491 Trillion KRW, operating profit at 285.6 billion KRW, 15.4% and 20.7% YoY growth respectively

– 'Triple Growth' of operating profit, sales volume, and revenue in the global cigarette business, accelerates core business profitability-based growth

SEOUL, South Korea, May 8, 2025 /PRNewswire/ -- On the 8th, KT&G(KRX: 033780) hosted an earnings call, announcing results for the first quarter of 2025.

KT&G reported a consolidated revenue of 1.491 trillion KRW and consolidated operating profit of 285.6 billion KRW, a year-on-year growth of 15.4% and 20.7% respectively. Revenue and operating profit both showed double-digit growth, while profit growth surpassed that of revenue, demonstrating the results of profitability-focused business management. 

In KT&G's main business, the cigarette business, revenue grew 15.3% YoY reaching 988 billion KRW and operating profit grew 22.4% reaching 252.9 billion KRW, resulting from the high growth of the global business. Price hikes and sales volume growth in major markets led to the global cigarette business's "triple growth" in operating profit, sales volume, and revenue for four consecutive quarters. The global business's operating profit soared with 312.5% growth and revenue rose 53.9% YoY to record 449.1 billion KRW, marking a new historic high in quarterly performance. 

The achievements resulted from CEO Kyung-man Bang's fully-local value chain strategy that was implemented since his inauguration last year. In addition, local infrastructure expansion such as the completion of the new factory in Kazakhstan last April, and the upcoming completion of the new Indonesian factory next year is expected to accelerate the growth of the global business even further.

The NGP business, with its flagship brand "lil Hybrid", saw a 6.5% YoY revenue growth in the Korean market. The Health Functional Foods (HFF) division, managed by KGC (Korea Ginseng Corporation), reported revenue growth of 1.9% YoY despite slowdown of the domestic economy owing to Korean holiday promotions and growth in major global markets. As the performance of development projects were reflected, the real estate division contributed to profitability improvements of the corporation, with revenue and operating profit reaching 100.4 billion KRW and 10.4 billion KRW.

Previously, KT&G announced shareholder return programs totaling 3.7 trillion KRW between 2024 and 2027 that includes cash dividends as well as stock repurchasing and cancellation of 20% or more of outstanding shares. Last year, KT&G made a total cash return of 1.1 trillion KRW, reaching 100% total shareholder return, while cancelling treasury shares equivalent to 6.3% of outstanding shares. In 2025, KT&G continues to implement its shareholder value improvement strategy, top-tier in the Korean market, and pursuing value-up programs in greater scale; in the first quarter, KT&G has completed the cancellation of treasury stocks amounting to 2.5% of outstanding shares worth approximately 360 billion KRW.

A KT&G spokesperson stated that "despite hostile business conditions such as a sharp rise in foreign exchange rates and a decelerating domestic economy, the company saw a mutual growth of revenue and operating profit by focusing on enhancing competitiveness of the core business profitability," further commenting that "the company will secure future growth momentum through increased global competitiveness and an expansion of business scope from cigarettes to 'Modern Products.'"

KT&G CEO Kyung-man Bang

 

KT&G CEO Kyung-man Bang at Kazakhstan factory opening Ceremony

 

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SOURCE KT&G Corporation

FAQ

What were KT&G's (KTCIY) Q1 2025 financial results?

KT&G reported Q1 2025 consolidated revenue of 1.491 trillion KRW (up 15.4% YoY) and operating profit of 285.6 billion KRW (up 20.7% YoY).

How much did KT&G's global cigarette business grow in Q1 2025?

KT&G's global cigarette business achieved significant growth with operating profit up 312.5% and revenue increasing 53.9% YoY to 449.1 billion KRW.

What is KT&G's shareholder return program for 2024-2027?

KT&G announced a 3.7 trillion KRW shareholder return program for 2024-2027, including cash dividends and stock repurchasing with cancellation of 20% or more of outstanding shares.

How many treasury shares did KT&G cancel in Q1 2025?

In Q1 2025, KT&G cancelled treasury stocks worth approximately 360 billion KRW, representing 2.5% of outstanding shares.

How did KT&G's NGP and Health Functional Foods divisions perform in Q1 2025?

The NGP business saw 6.5% YoY revenue growth in the Korean market, while the Health Functional Foods division grew 1.9% YoY.
KT&G Corporation

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