#Tobacco #KT&G #ESSE

KT&G Excels with Third Quarter of Growth

KT&G, a prominent player in the tobacco industry, reported remarkable financial results during its earnings release on August 7, 2025. The company has achieved an impressive record, showing consistent growth in both revenue and profit for three straight quarters beginning from Q4 2024. In the second quarter of 2025, KT&G reached a consolidated revenue of KRW 1.5479 trillion and an operating profit of KRW 349.8 billion, representing year-over-year growth rates of 8.7% and 8.6%, respectively. The first half of 2025 also marked a significant milestone for KT&G, as its total revenue surpassed KRW 3 trillion for the first time.

One of the key drivers behind KT&G's success is the robust performance of its core tobacco segment. Revenue within this division grew by 10% year-on-year to KRW 1.0906 trillion, while operating profit saw a more modest increase of 1.6%, totaling KRW 321.8 billion. This growth can be largely attributed to the outstanding performance of its global cigarette business, which has achieved five consecutive quarters of impressive, triple-digit growth. The revenues from this segment reached KRW 469 billion, marking a phenomenal 30.6% improvement from the previous year, with sales volume also climbing 9.1% to reach 16.7 billion sticks.

Much of KT&G's strong financial performance can be credited to the strategic initiatives led by its CEO, Kyung-man Bang. A key aspect of the company’s strategy includes the comprehensive local integration of its value chains and the ongoing transition to a Customer Integration Center (CIC) system. In efforts to bolster its market presence, KT&G has also rolled out competitive new products, particularly the