KT&G Corp., South Korea’s leading tobacco firm, reported a 58% increase in net profit for the second quarter of 2024, driven by robust export growth and a favorable exchange rate. Net profit rose to 318 billion won ($231 million) from 201.93 billion won in the same period last year.
The company attributed its strong performance to increased exports of traditional cigarettes and higher demand for its next-generation heat-not-burn product, Lil. The weak won against the U.S. dollar also contributed to this growth, as it enhanced the value of dollar-denominated earnings when converted to the local currency.
Operating profit for the quarter climbed 31% to 321.48 billion won, up from 246.11 billion won a year ago. Sales increased by 6.6%, reaching 1.42 trillion won compared to 1.34 trillion won in the previous year.
To boost shareholder value, KT&G announced plans to buy back 3.61 million treasury stocks worth 350 billion won from August 9 to November 8, with the intention of canceling them.
For the first half of the year, KT&G’s net income rose 27% to 603.62 billion won from 476.15 billion won a year earlier. Despite challenges, the company aims for over 10% growth in sales and a 6% increase in operating profit for 2024.
However, for the entire year of 2023, KT&G’s operating income declined 7.9% to 1.17 trillion won on total sales of 5.87 trillion won.
