Prime Highlights-
- KT&G posts its highest-ever first-half revenue, prompting the company to raise full-year 2026 growth guidance.
- Fourth straight quarter of double-digit operating profit growth reinforces KT&G’s global business momentum.
Key Facts-
- Q2 revenue rose 9.9% year-on-year to KRW 1.7016 trillion, with operating profit up 18.5% to KRW 414.5 billion.
- Board raises interim dividend to KRW 2,000 per share, up from KRW 1,400 a year earlier.
Background-
South Korean tobacco group KT&G has posted its strongest first-half revenue on record, powered by robust global performance and a profitability-driven strategy. Operating profit climbed by double digits year-on-year for a fourth straight quarter, prompting the company to lift its full-year 2026 guidance.
Second-quarter consolidated revenue reached KRW 1.7016 trillion, up 9.9% year-on-year, while operating profit rose 18.5% to KRW 414.5 billion. The company lifted its full-year revenue growth outlook from a 3-5% range to 5-7%, while raising its operating profit growth target from 6-8% to 10-13%.
Tobacco remained the standout performer, with revenue climbing 11.7% to KRW 1.2185 trillion and operating profit advancing 18.8% to KRW 382.5 billion. The global cigarette business outpaced every other segment, posting an 18.9% revenue gain and a 45.6% jump in operating profit even as external conditions stayed unsettled. Within its home market, KT&G maintained a commanding position in cigarettes, holding a 67.9% share over the first half.
The Next Generation Products division also gained ground, capturing 48.2% of the domestic market as revenue grew 23.8% to KRW 242.7 billion, helped by the ‘lil AIBLE 3.0’ launch earlier this year. New NGP products are planned for the second half.
KGC, the group’s health foods arm, saw domestic revenue rise 7.8% to KRW 174.2 billion, though overseas revenue dipped on inventory adjustments in China. Unit operating profit still jumped 61.3% to KRW 10.0 billion.
The board raised the interim dividend to KRW 2,000 per share, up from KRW 1,400 a year earlier, and may lift the year-end payout further. CFO Sang-hak Lee said the company would keep strengthening shareholder returns through dividends and treasury share buybacks.
