KT&G's consolidated operating profit for the second quarter was 349.8 billion won, an increase of 8.6% compared to the same period last year. Revenue rose to 1.5479 trillion won, up 8.7%.
Revenue from the tobacco division reached 1.0906 trillion won, with operating profit recorded at 32.18 billion won, both up 10% and 1.6%, respectively, from the same period last year.
A KT&G official noted, "In particular, overseas cigarettes achieved 'triple growth' in sales, operating profits, and sales volume, increasing for five consecutive quarters." Overseas cigarette sales reached 469 billion won, up 30.6% compared to the second quarter of last year. The sales volume during the same period increased by 9.1% to 16.7 billion sticks. This is the highest quarterly sales and volume ever recorded.
A KT&G official said, "The launch of competitive new products centered on 'Essé' and the expanded share of high-priced products based on increased brand power in key regions like Asia-Pacific, Central Asia, and Latin America was effective," adding, "When the local procurement system for materials and supplies is completed in our overseas factories this second half of the year, we should be able to achieve profit growth through cost reductions."
Meanwhile, KT&G reported that in the domestic e-cigarette (Next Generation Products) division, sales of 'Lil Abler' increased, capturing a market share of 45.8% in the first half of the year, and overseas stick sales volume reached 2.2 billion sticks, a 4.2% rise year-over-year, boosting sales. The operating profit from health supplements was 6.2 billion won.
On the same day, KT&G's board of directors decided to raise the interim dividend by 200 won to 1,400 won, strengthening its high-dividend policy. It also plans to buy back and retire approximately 300 billion won worth of its own shares starting on the 8th. Thus, in the second half of the year, additional shares buyback and retirement will be pursued using funds raised from liquidating non-core assets like real estate.
Earlier, KT&G announced plans for a cash return totaling 3.7 trillion won through cash dividends and stock buybacks between 2024 and 2027, including the retirement of more than 20% of total outstanding shares with newly purchased shares, aiming for one of the highest levels of value enhancement domestically and internationally.