[Edaily Reporter kim mi-kyung ] KT&G Corporation achieved record-breaking third-quarter earnings this year, driven by robust growth in its core tobacco business. With cumulative third-quarter revenue exceeding 5 trillion won, the company is on track to achieve annual revenue of 7 trillion won for the first time since its founding. Building on this strong performance, the company also announced a plan to return more than 5 trillion won to shareholders over the next four years.

#KT&G Corporation made this announcement on the 5th during a “Capital Markets Day” event, where it held an investor briefing and presented its mid- to long-term shareholder return plan and business strategy.

According to the Financial Supervisory Service’s electronic disclosure system that day, KT&G Corporation’s consolidated revenue for the third quarter of this year was 1.9052 trillion won, a 4.3% increase compared to the same period last year. Operating profit rose 13.9% to 530.1 billion won. Both revenue and operating profit marked record highs for a single quarter.

The tobacco business was the driving force behind these results. Revenue in the tobacco division rose 6% year-over-year to 1.3065 trillion won, while operating profit increased 14.4% to 425.5 billion won. The operating profit margin stood at 32.6%, up 2.4 percentage points from the same period last year. In particular, the overseas cigarette business achieved simultaneous growth in sales volume, revenue, and operating profit for the 10th consecutive quarter. The next-generation tobacco (NGP) business, including heated tobacco products, also maintained its No. 1 market share in the domestic market.

KGC (Korea Ginseng Corporation), the subsidiary responsible for the health functional foods business, reported third-quarter revenue of 372.2 billion won, a 3.4% increase year-over-year. Operating profit rose 12.2% to 80.1 billion won.

Following the earnings announcement, the KT&G Corporation also unveiled its medium- to long-term shareholder return policy. KT&G Corporation plans to set this year’s annual dividend per share (DPS) at 8,000 won, an increase of 2,000 won (33.3%) from the previous year. The company also decided to raise its dividend payout ratio—currently at 60%—to over 75% by 2030.

The company will also proceed with share buybacks and cancellations. Starting next year, it plans to buy back and cancel its own shares totaling 1.2 trillion won over the next four years. Including dividends, the total shareholder returns over the next four years will exceed 5 trillion won. The company will also consider special shareholder returns if it determines that further enhancement of shareholder value is necessary.

The business strategy focuses on expanding overseas markets and strengthening profitability. KT&G Corporation has set targets of 7 trillion won in annual group revenue and 1.5 trillion won in operating profit for this year. The company plans to strengthen the global competitiveness of its three core businesses: overseas cigarettes, NGP, and health functional foods.

In the overseas cigarette business, the company will pursue strategic price increases and expand the sales share of premium products, centered on key brands such as ESSE. It will also intensify efforts to tap into potential markets, including 30 countries where it has not yet entered. In particular, by leveraging facilities such as the new factory in Indonesia—which was completed last October—the company aims to achieve cumulative cost savings of over 550 billion won over the next four years.

In the NGP business, the company will pursue both global partnerships and independent direct operations in local markets to expand overseas sales of heated tobacco products (HNB). The “LOOP” brand, owned by ASF—a Swedish nicotine pouch manufacturer acquired late last year—aims to enter approximately 70 countries, including the United States, by 2030. KGC plans to expand its red ginseng raw material business in addition to sales of existing Jeonggwangjang products, while also pursuing technology partnerships and product development with global F&F and beauty companies. The strategy is to increase the proportion of overseas sales through these efforts.

KT&G Corporation has set a goal to increase the share of overseas cigarette sales to over 70% by 2030, while also expanding the share of NGP sales within its tobacco business and the share of overseas sales of health functional foods to over 30% each.

Bang Kyung-man, President of KT&G Corporation, stated, “Through the advancement and global expansion of our three growth pillars—overseas cigarettes, NGP, and health functional foods—we will achieve growth centered on profitability rather than mere revenue expansion.” He added, “Based on sustained profit growth, we will enhance shareholder value through world-class shareholder returns.”