[Edaily Reporter kim mi-kyung ] #KT&G Corporation set a new record for first-half revenue thanks to strong overseas performance and a profitability-focused growth strategy. Operating profit continued to post double-digit year-over-year growth for the fourth consecutive quarter.

KT&G Corporation announced on the 6th that, on a consolidated basis, its second-quarter revenue for this year reached 1.7016 trillion won and operating profit reached 414.5 billion won, representing increases of 9.9% and 18.5%, respectively, compared to the same period last year. Accordingly, KT&G Corporation has revised its full-year earnings outlook upward. The company raised its revenue forecast for this year from the previous range of 3–5% to 5–7%, and its operating profit forecast from 6–8% to 10–13%.

By business segment, the core tobacco business drove the results. Revenue for the tobacco segment reached 1.2185 trillion won, an 11.7% increase compared to the same period last year. Operating profit grew by 18.8% to 382.5 billion won. In particular, the overseas cigarette business led the growth. Despite uncertainties such as the war in Iran, second-quarter revenue and operating profit surged by 18.9% and 45.6%, respectively. The domestic cigarette business also maintained its overwhelming lead, recording a 67.9% market share in the first half of the year.

The Next-Generation Product (NGP) business solidified its top position by capturing a 48.2% share of the domestic market. NGP revenue reached 242.7 billion won, a year-over-year increase of approximately 23.8%. This was largely driven by the growing share of high-end sticks, fueled by the strong sales of “Lil Able 3.0,” which was launched last February. KT&G Corporation plans to diversify its product lineup and further strengthen its market dominance through the launch of new products in the second half of the year.

The KGC business, which handles health functional foods, also saw improved profitability. The health functional foods division posted second-quarter revenue of 174.2 billion won, a 7.8% increase compared to the same period last year. Overseas revenue stood at 49.6 billion won, a decrease of 9.4 billion won from a year ago, due to inventory adjustments in the Chinese distribution channel. Operating profit for the health functional foods division surged 61.3% to 10.0 billion won, driven by expanded sales through high-margin channels.

KT&G Corporation has also decided to increase its dividend. Buoyed by strong performance, the board of directors resolved to raise the interim dividend from 1,400 won last year to 2,000 won—an increase of 600 won (42.9%)—thereby reinforcing its policy of generous dividends. Furthermore, based on profit growth and its capacity for shareholder returns, the company plans to consider raising the year-end dividend in the future.

KT&G Corporation achieved its treasury stock cancellation target ahead of schedule by canceling all of its held treasury shares last April. Furthermore, the company plans to announce a new mid- to long-term shareholder return policy—which includes enhanced dividends—in the fourth quarter. The company decided to proceed as planned with the purchase and cancellation of new treasury shares in the second half of the year.

Lee Sang-hak, Senior Vice President of KT&G Corporation, stated, “Revenue and operating profit grew in tandem, driven by increased profits from overseas operations and the growth of our domestic NGP business.” He added, “We will continue to implement shareholder return policies, such as high dividends and share buybacks and cancellations, to enhance shareholder value.”