KT&G Q3 Operating Profit Down 2.3% Due to "Exchange Rate Fluctuations and Decline in Exported Cigarette Sales"

[Asia Economy Reporter Seungjin Lee] KT&G announced on the 4th that its consolidated operating profit for the third quarter of this year was 423.9 billion KRW, a 2.3% decrease compared to the same period last year.

Third-quarter sales increased by 7.2% to 1.5684 trillion KRW, and net profit rose by 29.3% to 359.2 billion KRW.

KT&G attributed the decline in operating profit to "exchange rate fluctuations, decreased sales of export cigarettes, and delayed recovery of major non-tobacco consolidated affiliates such as KGC."

In the third quarter, KT&G's domestic heated tobacco product sales volume was 11.1 billion sticks, down by 800 million sticks, but market share increased by 0.2 percentage points (p) to 65.1%.

The market share of heated tobacco products reached its highest level since 2009, driven by strong sales of new products such as Bohem Cigar Caribe and ultra-slim products.

Overseas cigarette sales volume was 11.2 billion sticks, down 11.8% from the same period last year, and sales revenue decreased by 4.5% to 251 billion KRW.

KT&G analyzed that although overseas subsidiaries grew, total tobacco demand in the Middle East declined, leading to reduced export volume.

KGC Ginseng Corporation's third-quarter sales were 417.6 billion KRW, down 1.1% from the same period last year, and operating profit was 68.6 billion KRW, a 15.7% decrease.

Cost of sales increased due to higher exports centered on high-cost root ginseng products, but sales in high-profit channels such as franchise stores and duty-free shops declined.

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