- Quarterly global cigarette revenue surpasses KRW 500 billion for the first time; cigarette& NGP performs solidly hand-in-hand
- Acquires ASF jointly with Altria, modern product's global expansion to gain momentum
SEOUL, South Korea, Nov. 6, 2025 -- KT&G (KRX: 033780) presented its simultaneous achievement of record-high quarterly revenue and operating profit based on core business competitiveness and profitability-focused growth strategy, announcing its according upward adjustment of yearly guidance during an earnings call held on the 6th.
KT&G's third quarter consolidated revenue was KRW 1.8269 trillion and operating profit was at KRW 465.3 billion. This equates to a respective YoY growth of 11.6% and 11.4%; in particular, operating profit was at a five-year high based on the company's profitability maximization strategy.
Based on the solid results, KT&G raised the annual revenue and operating profit guidance from respective previous forecasts of 5~7% and 6~8% to "double digit growth".
To examine Q3 results in detail, the cigarette business segment marked a new quarterly record with a KRW 1.2323 trillion revenue, a 17.6% YoY growth, and operating profit grew 11% YoY to KRW 371.8 billion.
The global cigarette business in particular broke the record for the third consecutive quarter based on volume growth in major markets like Central Asia, Latin America, and Asia-Pacific and strategic price hikes. Global cigarette business's Q3 revenue grew 24.9% YoY reaching KRW 524.2 billion, surpassing the KRW 500 billion threshold for the first time in quarterly performance history. Operating profit and volume grew 22.4% and 12.8% respectively.
Domestic tobacco business, including cigarettes and NGP (Next Generation Products) businesses, maintained the overwhelming leadership in terms of market share despite the growing competition, while global NGP business observed simultaneous device and stick sales volume growth rooted in launch of new versions of devices and other factors.
The health functional foods business, run by KGC, restructured channel portfolios towards high-profit channels and saw a revenue of KRW 359.8 billion, a 16.8% YoY decrease; but it observed the benefits of its profitability-focused strategies such as optimization of marketing costs and saw operating profit reach KRW 71.5 billion, a 3.9% YoY growth.
Previously in September, KT&G announced a comprehensive MOU that strengthened strategic collaboration with the American Top-tier tobacco manufacturer Altria, stating that it will jointly acquire "Another Snus Factory (ASF, Northern European nicotine pouch manufacturer)". Accordingly, both companies aim to conclude the acquisition process in December and add momentum to global expansion of the nicotine pouch business in 2026.
During Investor Day session in September, KT&G CEO Kyung-man Bang revealed "shareholder return distribution principles" that efficiently utilizes excess capital to maximize corporate and shareholder value simultaneously. Major agendas include total shareholder returns of 100% or higher; dividend payout ratio of 50% or higher; setting a lower limit dividend yield; and execution of elastic share repurchases throughout the year if share prices are underrated relative to long-term intrinsic value.
To do so, KT&G used the capital from liquidation of real estate property and other non-essential assets to complete additional repurchase and cancellation of stocks worth KRW 260 billion on the 28th of last month. Furthermore, KT&G, faithfully acting on "shareholder return distribution policies," set minimum annual dividend per share at KRW 6,000, up KRW 600 from the previous year.
KT&G CFO Sang-hak Lee stated that "the company achieved record quarterly revenue and operating profit in the third quarter through the sophistication of the global cigarette business's fully locally-integrated structure," going on to say "the company will secure future growth momentum centered on Modern Products and NGP going forward while reinforcing core competitiveness to improve corporate and shareholder value."
