KT&G enters era of KRW 6 Trillion annual revenue in 2025, operating profit break KRW 1.3 trillion mark
MWN-AI** Summary
KT&G Corporation has achieved a significant milestone, reporting annual revenues of KRW 6.5796 trillion and operating profits of KRW 1.3495 trillion for 2025, marking Year-on-Year (YoY) growth rates of 11.4% and 13.5%, respectively. This noteworthy performance was highlighted during the company's recent earnings call held on February 5, 2026. Notably, for the first time, KT&G’s global cigarette revenue has surpassed domestic sales, reaching KRW 1.8775 trillion, with a remarkable YoY increase of 14.6%, further showcasing the company’s expanding international footprint.
Management, under CEO Kyung-man Bang, has focused on bolstering global competitiveness and strategic profitability, adapting to market demands through structural reforms. These adjustments have not only improved financial metrics but have also positively influenced the capital market, as evidenced by the share price reaching a peak of KRW 164,000.
In addition to the success in traditional tobacco products, KT&G's Next Generation Products (NGP) segment demonstrated impressive growth, contributing KRW 890.1 billion in revenue — a 13.5% increase YoY. The company plans to diversify this segment beyond heated tobacco products, anticipating stronger growth through innovative portfolios involving nicotine pouches.
Looking ahead, KT&G aims for revenue growth of 3-5% and operating profit growth of 6-8%. Key to achieving these targets will be their continued investment in global manufacturing and strategic pricing. The firm maintains a strong commitment to shareholder returns, ensuring a dividend payout of at least 50% and flexible share buybacks when deemed appropriate. The strategic evolution from an export-centric model to a more localized business format positions KT&G for sustained competitive advantage and operational success in the global market.
MWN-AI** Analysis
KT&G's impressive performance in 2025, achieving an annual revenue of KRW 6.579 trillion and operating profit surpassing KRW 1.3 trillion, signals a robust phase for the company. Notably, a YoY revenue growth of 11.4% and operating profit growth of 13.5% reflect strategic realignments under CEO Kyung-man Bang. The shift towards a global focus, with revenue from international markets surpassing domestic figures for the first time, marks a pivotal moment for KT&G.
Investors should take a closer look at KT&G’s growth trajectory, particularly its sustained rise in global cigarette revenues which reached KRW 1.877 trillion – a remarkable 14.6% increase YoY. This substantial growth, backed by strategic price hikes and increased sales volumes, positions KT&G to benefit from rising demand in international markets. The company’s focus on diversifying its product range, particularly through innovations in the Next Generation Products (NGP) segment, further enhances its appeal.
Moreover, KT&G's planned expansion in global manufacturing facilities, including the upcoming Indonesian plant, indicates a commitment to scaling operations and improving cost efficiencies. The emphasis on reducing cost of goods sold (COGS) while pursuing double-digit growth in key product lines is encouraging for long-term profitability.
For investors considering entry or expansion in their KT&G positions, the anticipated re-rating of the share price to the KRW 160,000 range suggests substantial upside potential. KT&G’s commitment to maintaining a dividend payout ratio of 50% or higher further enhances its attractiveness as a dividend stock.
In conclusion, KT&G's strategic focus on global markets, product diversification, and operational efficiency sets the stage for sustained growth. Prudent investors should consider capitalizing on the current market dynamics, keeping an eye on potential price fluctuations as the company continues its upward trajectory.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
KT&G enters era of KRW 6 Trillion annual revenue in 2025, operating profit break KRW 1.3 trillion mark
PR Newswire
- Revenue at KRW 6.5796 Trillion, operating profit at KRW 1.3496, 11.4% and 13.5% YoY growth respectively
- Global cigarette revenue surpasses domestic revenue for the first time—Solid growth prospects leads to share price re-rating to KRW 160,000 range
SEOUL, South Korea, Feb. 5, 2026 /PRNewswire/ -- KT&G(KRX: 033780) held an earnings call on the 5th to announce 2025 Q4 and annual results as well as 2026 management goals.
KT&G's 2025 Q4 consolidated revenue was KRW 1.7137 trillion and operating profit was KRW 248.8 billion, a YoY growth of 10.1% and 17.1% respectively. Annual revenue grew 11.4% to a historic high of KRW 6.5796 trillion while operating profit rose 13.5% to reach KRW 1.3495 trillion. A one-time labor related cost of KRW 70 billion was incurred, resulting in an adjusted operating profit of KRW 1.4198 trillion a 19,4% YoY increase.
After Kyung-man Bang took office as the CEO, KT&G has implemented core and global business competitiveness reinforcement strategies as well as a profitability-based growth strategies that resulted in record high performance in 2024 as well as last year. KT&G's structural reforms including establishment of global CIC(Company-In-Company) leading to structural growth reinforcement continues to receive positive feedback from the capital market. Meanwhile, share prices reached a new intraday record of KRW 164,000 on the 4rd.
In detail, the global cigarette business broke the revenue, volume, and operating profit record simultaneously, towing the overall performance. The global cigarette business's revenue was KRW 1.8775 trillion, observing a 14.6% YoY growth. The proportion of the global cigarette's revenue in the entire group's cigarette revenue surpassed that of the domestic business for the first time, recording 54.1%. Sales volume and the average unit sales prices, driven by strategic price hikes, both saw double-digit growth.
The NGP(Next Generation Products) business continued the expansion trend through new device and stick launches in domestic and global markets. Revenue rose 13.5% YoY to KRW 890.1 billion while stick sales volume rose by 2% to 14.78 billion sticks.
KT&G presented the guidance for 2026 alongside last year's results. Through the KRW 2.4 trillion CAPEX investment announced in 2023, KT&G's Kazakhstan factory is now in production while the new Indonesian factory, planned to start operations in March, will also contribute to the conversion to a global location manufacturing scheme.
Based on the global manufacturing facility expansion, KT&G plans to reinforce profitability via COGS reduction and strategic price increases in 2026. The company also targets double-digit quantitative and qualitative growth in the global cigarette business through diversifying business models to include OEM and licensing.
KT&G also plans to diversify its NGP business in order to strengthen its core business, the tobacco business. The company plans to move away from the previous notion of NGP, equated to heated tobacco products, and expand the portfolio to include other items including nicotine pouches based on the acquisition of "ASF(Another Snus Factory).
Based on the continued growth of the global cigarettes business, NGP portfolio diversification, market expansion, and other core competitiveness foundations, KT&G has set target for revenue growth at 3~5% and for operating profit at 6~8%.
As announced during the "CEO Investor Day" last September, KT&G plans to maintain total shareholder return at 100% or higher and maintain growth of dividend per share currently at KRW 6,000 this year through measures such as sustaining a dividend payout ratio of 50% or above and flexibly repurchasing shares if it is deemed that share prices are undervalued relative to the long-term intrinsic value.
KT&G CFO Sang-Hak Lee stated that "by moving away from the former export based structure and toward a more direct local business structure, the global cigarette revenue has for the first time surpassed that of the domestic business. Going forward, the company will continue to fortify its global core competitiveness and secure future growth momentum through modern product category and market entry expansion in order to continue Korea's top-tier shareholder return programs."
SOURCE KT&G Corporation
FAQ**
How has KT&G Corporation GDR - 144A KTCIY's strategic focus on global cigarette revenue contributed to its recent performance and the surpassing of domestic revenue for the first time?
What key factors led to the 11.4% YoY growth in annual revenue for KT&G Corporation GDR - 144A KTCIY, and how does the company plan to sustain this growth moving forward?
Can you elaborate on the specific measures KT&G Corporation GDR - 144A KTCIY is implementing to enhance profitability while managing the challenges posed by rising costs?
With the diversification of its product offerings, including the move into nicotine pouches, how does KT&G Corporation GDR - 14KTCIY plan to strengthen its core tobacco business while ensuring shareholder returns?
**MWN-AI FAQ is based on asking OpenAI questions about KT&G Corporation GDR - 144A (OTC: KTCIY).
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