KT&G Reports Operating Profit of 1.2678 Trillion KRW Last Year... "Highest Annual Sales Ever" (Comprehensive)

KT&G recorded its highest-ever annual sales, driven by the growth of heated tobacco products both domestically and overseas.

On the 9th, KT&G announced that its consolidated operating profit for last year was preliminarily estimated at 1.2678 trillion KRW, a 5.3% decrease compared to the same period the previous year.

Sales increased by 12% to 5.8565 trillion KRW. Net profit rose by 3% to 1.008 trillion KRW. The sales figure marked a record high on a consolidated basis. Fourth-quarter sales last year reached 1.4118 trillion KRW, up 13.2% year-on-year, while operating profit was 201.6 billion KRW, down 29%. Net loss was recorded at 64.6 billion KRW.

Sales from overseas tobacco business, including heated tobacco products, reached a record high of 1.4202 trillion KRW. Overseas heated tobacco sales volume in the fourth quarter, combining overseas subsidiaries and exports, increased by 13.8% year-on-year to 12.8 billion sticks. Annual sales volume was 49.4 billion sticks, up 27.1%.

Domestically, consumption of heated tobacco products expanded, leading to increased sales volume despite an overall decline in total demand. Overseas, sales volume and revenue grew together due to direct business expansion in overseas subsidiaries such as Indonesia and the cultivation of new markets in Latin America. The increase in the number of countries entered and the expansion of SKUs in existing countries also contributed significantly.

A KT&G official stated, "This year, we will accelerate global business growth by expanding market dominance in the domestic and overseas heated tobacco business and strengthening direct overseas heated tobacco operations. It is expected to be the first year toward achieving 10 trillion KRW in group-wide sales by 2027 and becoming a top-tier global heated tobacco company."

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