(KT&G)
(KT&G)

Korea’s leading tobacco manufacturer, KT&G, reported revenue growth last year, driven largely by strong overseas sales.

According to its earnings report released on Thursday, the company posted 1.55 trillion won ($1.07 billion) in revenue and 208.5 billion won in operating profit in the fourth quarter of 2024, reflecting year-on-year increases of 8.0 percent and 5.3 percent, respectively. For the full year, KT&G recorded 5.91 trillion won in sales and 1.18 trillion won in operating profit, up 0.8 percent and 1.5 percent from the previous year.

The tobacco segment played a key role in boosting overall sales, generating 3.9 trillion won in revenue and 1.08 trillion won in operating profit, marking year-on-year increases of 8.1 percent and 10.7 percent, respectively.

Global cigarette sales, primarily driven by KT&G’s flagship Esse brand, surged 10.3 percent year-on-year, reaching an all-time high.

Meanwhile, the next-generation product segment, also known as heat-not-burn products, continued to expand, with stick sales increasing in both domestic and international markets. Last year, KT&G sold 6.15 billion sticks in Korea and 8.34 billion sticks globally, reflecting year-on-year growth of 7.7 percent and 1.5 percent, respectively.

For 2025, KT&G has set growth targets of at least 5 percent for consolidated revenue and 6 percent for operating profit.

As part of its financial strategy, KT&G will cancel treasury shares worth approximately 360 billion won, equivalent to 2.5 percent of its total issued shares. Additionally, the company plans to repurchase and cancel at least 300 billion won worth of shares within the year, using proceeds from the liquidation of non-core assets to retire a total of at least 4.5 percent of its treasury stock.

KT&G has also committed to shareholder returns of at least 1.1 trillion won, including a 600 billion won dividend payout.

The board has approved a 2024 year-end dividend of 4,200 won per share, with a record date set for Feb. 28. Including the previously paid interim dividend of 1,200 won per share, the total annual dividend amounts to 5,400 won per share.

"Despite uncertainties in both domestic and global markets in 2025, we will continue on our growth trajectory by reinforcing our global business competitiveness while implementing best-in-class shareholder return programs to maximize value for our investors," a KT&G official said.


hykim@heraldcorp.com