Seoul: KT and G Corp., South Korea's leading tobacco company, announced a significant increase in its fourth-quarter net profit, which nearly tripled compared to the same period last year, primarily due to robust overseas sales. The company's net profit for the quarter ending in December surged to 301.7 billion won (approximately US$208.5 million) from 112.92 billion won recorded a year earlier, as disclosed in a regulatory filing.
According to Yonhap News Agency, the impressive financial performance was bolstered by a more than 10 percent increase in overseas tobacco sales in 2024 compared to the previous year, contributing to a record net result for the fourth quarter. A company spokesperson highlighted that the growth in international markets was a key factor in the financial success.
The company's operating profit also saw an upward trend, increasing by 5.3 percent to 208.5 billion won in the fourth quarter, compared to 197.97 billion won in the prior year. Sales similarly rose by 8 percent, reaching 1.55 trillion won from 1.44 trillion won in the corresponding period of the previous year.
For the entire year of 2024, KT and G achieved a 24 percent rise in net income, totaling 1.14 trillion won, up from 922.36 billion won in 2023. Operating income experienced a modest 1.5 percent year-on-year growth, amounting to 1.18 trillion won, while annual sales increased slightly by 0.8 percent, totaling 5.9 trillion won.
Looking ahead to 2025, KT and G has set ambitious targets, aiming for a minimum of 6 percent growth in annual operating profit alongside a 5 percent increase in sales. The company generates about 80 percent of its revenue from conventional cigarette sales, with the remaining 20 percent coming from heat-not-burn (HNB) products. Unlike e-cigarettes, HNB products use electronic devices to heat tobacco to a high temperature without burning it, producing smoke for inhalation.
KT and G also owns Korea Ginseng Corp., which specializes in ginseng and cosmetic products. The company operates production facilities in four countries: South Korea, Russia, Turkey, and Indonesia. Additionally, it is in the process of constructing a new plant in Kazakhstan, expected to be completed this year.