Korean Tobacco's Q3 Performance For 24 Years: Net Profit Drops By 28% To $200 Million, Tobacco Business Hits Historic High

Korean Tobacco's Q3 performance for 24 years: Net profit drops by 28% to $200 million, tobacco business hits historic high

KT&G's Q3 2024 financial report shows a year-on-year decrease of 28% in net profit to $200 million. The core business sales of overseas cigarettes and NGP continue to exceed 1 trillion Korean won, setting a record for the highest quarterly sales in history.

According to N On November 7th, News reported that South Korean tobacco company KT&G released its Q3 2024 financial report. The report shows that KT&G's sales in the third quarter decreased by 3.1% year-on-year, reaching 1636.3 billion Korean won (1.2 billion US dollars); Operating profit increased by 2.2% year-on-year, reaching 415.7 billion Korean won (300 million US dollars); Net profit decreased by 28% year-on-year, reaching 239.9 billion Korean won (200 million US dollars).

KT&G explained that growth in Q3 will continue to be centered around its main business. The sales revenue of the three core businesses centered on overseas cigarettes, NGP (new tobacco products), and health functional foods continued to exceed 1 trillion Korean won, setting a record for the highest quarterly sales revenue in history.

In addition, the sales revenue of the tobacco business in Q3 reached 1047.8 billion Korean won (750 million US dollars), a year-on-year increase of 7.7%, setting a record high for the quarter. The operating profit also increased by 23.6%, reaching 333 billion Korean won (230 million US dollars).

On the same day, KT&G also announced an upgraded version of the "Enterprise Value Enhancement Plan". The core of the plan is to achieve a 15% return on equity (ROE) by 2027 and expand the scale of cash returns and repurchases of cancelled stocks. According to this new plan, shareholder feedback in 2024 will be further expanded. On that day, the KT&G board of directors decided to use approximately KRW 150 billion (USD 100 million) obtained through the realization of non core and low yield assets to repurchase and cancel 1.35 million shares of its own stock within the year.

A spokesperson for KT&G stated that,

In the future, we will continue to focus our resources and capabilities on the three core businesses, striving to enhance the company's fundamental competitiveness. At the same time, by giving back the results of these efforts to shareholders, we will achieve mutual growth in enterprise value and shareholder value, and achieve true value enhancement