KT&G Reports Operating Profit of 1.3195 Trillion KRW Last Year, Down 10.4% YoY

Sales Reach 5 Trillion Won for Two Consecutive Years

[Asia Economy Reporter Eunmo Koo] KT&G announced on the 10th that its consolidated operating profit for last year was tentatively estimated at 1.3195 trillion KRW, down 10.4% from the previous year. During the same period, sales increased by 3.4% to 5.2284 trillion KRW, and net profit decreased by 15.5% to 990 billion KRW. Sales reached an all-time high, marking the second consecutive year of exceeding 5 trillion KRW following the previous year.

Operating profit for the fourth quarter of last year was 264.9 billion KRW, down 24.5% compared to the same period last year. Sales and net profit were 1.2475 trillion KRW and 111.5 billion KRW, respectively, decreasing by 2.3% and 63.7%.

KT&G explained, "Sales increased thanks to the growth of domestic and overseas heated tobacco products, but operating profit declined due to reduced profits from export cigarettes and real estate sales, as well as decreased earnings from domestic consolidated subsidiaries such as KGC Ginseng Corporation."

KT&G introduced, "Domestic sales volume of heated cigarettes last year was 41.1 billion sticks, down 1.3% from the previous year, and overseas cigarette sales volume (overseas subsidiaries + exports) was 38.8 billion sticks, down 7.4%."

However, KT&G added, "Despite the difficult situation with the spread of COVID-19 last year, we newly entered about 20 countries, bringing the total number of countries we have entered to over 120. If logistics congestion eases, exports of heated cigarettes are expected to gradually recover."

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