KT&G Corporation, South Korea’s premier tobacco manufacturer, recently announced its financial results for the second quarter of 2024. The company reported a 6.6% increase in consolidated revenue, reaching KRW 1.424 trillion, and a 30.6% rise in operating profit, totaling KRW 321.5 billion. These impressive gains were primarily fueled by the exceptional performance of KT&G’s Overseas Cigarette business, one of the company’s three core growth areas, alongside Next Generation Products and Health Functional Food.
In detail, the Overseas Cigarette business saw substantial growth across key metrics, achieving a record high revenue of KRW 359.1 billion, with a remarkable 35.3% year-over-year increase. Operating profit for this segment soared by 139.1%, showcasing the business’s profitability. Moreover, the domestic Next Generation Product business also experienced growth, with revenue, operating profit, and sales volume all on the rise compared to the previous year.
KT&G’s commitment to maximizing corporate value and enhancing shareholder returns was reiterated during the earnings conference call. The company’s strategic plans include significant measures such as a cash dividend of KRW 1.8 trillion, share buybacks totaling KRW 1 trillion, and the cancellation of approximately 15% of outstanding shares. This strong focus on shareholder value was underscored by the declaration of an interim dividend and plans for further buybacks and share cancellations, aiming to offer investors attractive returns on their investment.
Looking ahead, KT&G is determined to solidify its position as a ‘Global Top-tier’ company by driving fundamental competitiveness and structural reforms, particularly in its core growth businesses. A recent collaboration with Philip Morris International for U.S. PMTA submission for KT&G’s new NGP products exemplifies this commitment to innovation and growth.
Despite anticipating a challenging business environment in the Health Functional Food and Real Estate sectors, KT&G remains optimistic about its full-year outlook. The company projects a 2.5~3% growth in annual consolidated revenue, with operating profit expected to hold steady. These forecasts reflect KT&G’s strategic focus on strengthening core businesses and delivering sustained value to its shareholders.
In conclusion, KT&G’s second-quarter financial results highlight the company’s strong performance and commitment to enhancing shareholder value. By focusing on core growth areas, executing a robust shareholder return plan, and pursuing strategic collaborations, KT&G is poised for continued success in the dynamic global market. For more information on KT&G Corporation and its latest updates, visit their official website or follow them on social media.
SOURCE: KT&G Corporation
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