KT&G achieved both external growth and improved profitability last year. In particular, as overseas cigarette sales surpassed domestic sales for the first time, the company opened the era of KRW 6 trillion in annual revenue.

KT&G announced on the 5th that, on a consolidated basis, it recorded revenue of KRW 6,579.6 billion and operating profit of KRW 1,349.5 billion last year. These figures represent increases of 11.4% and 13.5%, respectively, compared with the previous year.

Revenue for the fourth quarter of last year was KRW 1,713.7 billion, up 10.1% year-on-year. Operating profit also grew 17.1% to KRW 248.8 billion.

Since the inauguration of CEO Bang Kyung-man, KT&G has been pursuing a growth strategy focused on strengthening competitiveness in its core and overseas businesses and on profitability. The capital market has continued to respond positively to its enhanced structural growth potential, driven by organizational reforms such as the establishment of overseas CICs (Company-in-Company, in-house independent companies).

More specifically, the overseas cigarette business led the overall performance, setting new all-time highs in revenue, volume, and operating profit. Overseas cigarette revenue reached KRW 1,877.5 billion, up 29.4% from a year earlier, and as overseas cigarette sales volumes increased, the global share of total cigarette revenue surpassed domestic for the first time, reaching 54.1%.

The NGP (Next Generation Products, e-cigarettes) business maintained its expansion through the launch of new devices and stick products at home and abroad. Revenue rose 13.5% year-on-year to KRW 890.1 billion, while stick sales volume increased 2% to 14.78 billion sticks.

KT&G also released its guidance for this year. Based on the large-scale capital expenditure of KRW 2,400 billion announced at the end of 2023, the company completed its Kazakhstan plant last year and has begun production there, and with the new plant in Indonesia scheduled to start operations in the first half of this year, it expects the shift to overseas production bases to accelerate.

In addition, leveraging the expansion of overseas production facilities, the company plans to enhance profitability through reduced cost of sales and continued strategic price increases. Through diversification of business models such as OEM and licensing, it aims to achieve both quantitative and qualitative growth in the overseas cigarette business, targeting double-digit gains in volume, revenue, and operating profit.

In the NGP business, KT&G plans to strengthen the competitiveness of its core tobacco operations through diversification. Moving beyond NGPs that have been limited to heated tobacco products, the company intends to expand its portfolio to include nicotine pouches, supported by last year’s acquisition of ASF (Another Snus Factory).

Lee Sang-hak, Senior Executive Vice President of KT&G, said, “By moving away from a structure centered on exports and strengthening direct local operations, overseas cigarette revenue has surpassed domestic sales for the first time,” adding, “KT&G will continue to advance its key global capabilities and accelerate future growth drivers by expanding modern product categories and market entries, while maintaining a top-tier level of shareholder returns in Korea.”

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