KT&G Aims for Global Leadership by Enhancing Operations and Competitiveness

KT&G Corporation, a leading South Korean conglomerate, has made headlines with its impressive performance for the fiscal year 2024. Reporting a remarkable revenue of KRW 5.91 trillion, the company showcases a steady growth trajectory with a 0.8% increase in revenue compared to the previous year. Moreover, its operating profit witnessed a significant 1.5% growth, reflecting a positive shift in the company's core profitability and financial efficiency.

The success can be attributed mainly to KT&G's global cigarette segment, which achieved an unprecedented sales volume growth of 10.3% year-on-year. This growth was propelled by the popularity of its flagship brand, ESSE, which saw increased sales not only in traditional markets but also in newly entered regions like Romania, Spain, Portugal, and Andorra. The revenue from this segment surged to a stunning 28% year-on-year increase, with operating profit skyrocketing by an impressive 84.2%.

KT&G's ambitious strategy to become a 'Global Top-tier' player involves reinforcing its competitiveness around global operations. The company's pursuit of enhanced market presence is evident through the establishment of offices and operations in ten different countries, including key locations in Europe, Indonesia, Taiwan, Russia, and Kazakhstan. Moreover, KT&G boasts a diverse workforce of 5,463 employees scattered across 148 countries, marking its commitment to international expansion.

Looking ahead to 2025, KT&G is determined to maintain the momentum of its recent performance. The company aims to deepen its reach in European markets, further solidifying its position as a global player in the tobacco industry. Leading investment groups have already taken notice of KT&G's positive outlook. Financial giant HSBC has advised a 'buy' recommendation based on the anticipated sustainability of KT&G's sales momentum for combustible tobacco products.

Similarly, CLSA, another global investment framework, has expressed confidence in KT&G's growth trajectory. They emphasize the company's proactive stance on channel expansion and its entry into new markets, resulting in an 'outperform' rating for the company. The financial community's optimism reflects KT&G's strategic efforts to broaden its operational scope and adapt to evolving market demands.

KT&G has established itself as a dominant player in the domestic market, holding the top position in the sectors of combustible cigarettes, smoke-free products, and health functional foods. Its robust commitment to sustainable practices is notable, having achieved an AA MSCI ESG rating consecutively for four years, earning recognition as an 'ESG Leader' in its field. Furthermore, KT&G has recently been listed in the prestigious Dow Jones Sustainability Indices' World Index, a testament to its dedication to environmental, social, and governance standards.

Global credit rating agencies have acknowledged KT&G's financial resilience, with Standard & Poor's and Moody's granting the company stable ratings of 'A-' and 'A3', respectively. These ratings serve as additional validation of KT&G's sound financial practices amid a highly competitive industry landscape.

In conclusion, KT&G's impressive 2024 performance is not merely a point of pride but a launching pad for its vision of global leadership. With its strategic focus on operational excellence and market expansion, KT&G is paving the way for sustained growth and a strong presence in international markets.