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- Achieved record-high quarterly revenue from the 3 core businesses and the tobacco business, including overseas cigarettes
- Also announced the Corporate Value-up Plan, including an additional KRW 150 billion share cancellation for 2024 and ROE target of 15% by 2027
SEOUL, South Korea, Nov. 7, 2024 /PRNewswire/ -- KT&G Corporation ("KT&G" or the "Company") (KRX:033780), today hosted an earnings conference call and announced its financial results for the third quarter and corporate value-up plan.
KT&G's consolidated revenue for the third quarter was KRW 1.636 trillion, and operating profit KRW 415.7 billion, up 2.2% year-on-year, due to strengthened competitiveness and profitability-oriented management.
The growth trend centered on the main business continued in the third quarter. Revenue of the 3 core growth businesses, namely overseas cigarettes, Next Generation Products (NGP), and health-functional foods exceeded KRW 1 trillion, achieving the highest-ever quarterly revenue, while the revenue of the tobacco business also reached a record high. Revenue in the tobacco business reached KRW 1.0478 trillion, up 7.7% from the same period last year, while operating profit grew 23.6% to KRW 333 billion, outpacing the revenue increase.
In the tobacco business, growth was particularly strong in overseas cigarettes. In the third quarter, revenue of the overseas cigarette business reached KRW 419.7 billion, up 30.5% year-over-year, setting a new record in revenue for two consecutive quarters, while sales volume and operating profit also increased by 10.1% and 167.2%, respectively, achieving "growth trifecta" in sales volume, revenue, and operating profit.
On the same day, KT&G also announced an upgraded KT&G Corporate Value-up Plan, which aims to achieve 15% ROE by 2027 and to increase cash returns, and to repurchase and cancel shares.
Since the appointment of CEO Kyung Man Bang in March, KT&G has been focusing on strengthening its global-oriented intrinsic competitiveness and upgrading the group's financial structure in order to take a leap to become a 'Global Top-tier' company. In particular, the company has been prioritizing the group's ROE enhancement project, which is based on the three pillars of profitability improvement, asset efficiency, and financial optimization, and plans to achieve '15% ROE' by 2027.
Under the new corporate value-up plan, shareholder return will also be expanded in 2024. On this day, KT&G's board of directors resolved to repurchase 1.35 million shares with KRW 150 billion of the financial resources secured through the securitization of non-core and low-yield assets and to cancel them in full within the year.
KT&G's spokesperson said, "We are in full swing in creating results by strengthening our business structure centered on our core business and upgrading our financial structure to become a 'Global Top-tier' company." "We will continue to focus our resources and capabilities on our 3 core businesses to strengthen our intrinsic competitiveness and return the fruits of our achievements to our shareholders to achieve true value-up where corporate value and shareholder value grow together."
source: KT&G Corporation
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