KT&G Q1 Operating Profit 317.7 Billion KRW, Up 1.2%... Overseas Sales Increase

[Asia Economy Reporter Lee Seung-jin] KT&G announced on the 12th that its operating profit for the first quarter of this year was tentatively estimated at 317.7 billion KRW, a 1.2% increase compared to the same period last year.

Sales increased by 7.3% to 1.2639 trillion KRW, but net profit decreased by 7.3% to 271.8 billion KRW.

KT&G explained that sales increased due to strong sales of heated tobacco products and growth in overseas subsidiaries.

Domestic sales volume of combustible cigarettes in the first quarter was 9.63 billion sticks, up 0.6% from the same period last year, and market share rose by 0.5 percentage points to 64.5%.

Regarding heated tobacco products, KT&G stated that the popularity of Lil Solid and Lil Hybrid led to a record-high market share of 38.4%.

KT&G's overseas sales increased by 15.8% to 193.7 billion KRW.

KT&G's subsidiary KGC Ginseng Corporation posted first-quarter sales of 380.2 billion KRW, down 2.8% year-on-year, and operating profit of 53.3 billion KRW, down 25.0%.

KGC Ginseng Corporation's sales declined due to the downturn in the duty-free market caused by COVID-19 and decreased home shopping sales. On the other hand, sales at retail stores increased due to the reflection of the Lunar New Year demand.

This content was produced with the assistance of AI translation services.