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KT&G Successfully Improves Profitability in First Year of New Leadership, Promises Active Shareholder Returns

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KT&G reported strong financial results for 2024, with consolidated revenue reaching KRW 5.91 trillion (up 0.8% YoY) and operating profit of KRW 1.185 trillion (up 1.5% YoY). Under new CEO Kyung-man Bang's leadership, the tobacco segment showed impressive growth with revenue of KRW 3.906 trillion (up 8.1%) and operating profit of KRW 1.082 trillion (up 10.7%).

The company's global cigarette sales achieved a 10.3% YoY growth, with revenue reaching a record KRW 1.45 trillion. The Next Generation Product segment also showed positive trends, with domestic stick sales of 6.15 billion (up 7.7%) and global sales of 8.34 billion (up 1.5%).

KT&G announced significant shareholder returns, including immediate cancellation of treasury shares worth KRW 360 billion, planned share repurchases of KRW 300 billion, and total shareholder returns of KRW 1.1 trillion or higher for 2025. The company achieved a 12.2% ROE in 2024 and set growth targets of 5%+ for revenue and 6%+ for operating profit in 2025.

KT&G ha riportato risultati finanziari solidi per il 2024, con un fatturato consolidato che ha raggiunto i 5,91 trilioni di KRW (in aumento dello 0,8% rispetto all'anno precedente) e un utile operativo di 1,185 trilioni di KRW (in crescita dell'1,5% su base annua). Sotto la guida del nuovo CEO Kyung-man Bang, il segmento del tabacco ha mostrato una crescita impressionante, con un fatturato di 3,906 trilioni di KRW (in aumento dell'8,1%) e un utile operativo di 1,082 trilioni di KRW (in aumento del 10,7%).

Le vendite globali di sigarette dell'azienda hanno registrato una crescita del 10,3% su base annua, con un fatturato che ha raggiunto un record di 1,45 trilioni di KRW. Anche il segmento dei Prodotti di Nuova Generazione ha mostrato tendenze positive, con vendite domestiche di 6,15 miliardi di stick (in aumento del 7,7%) e vendite globali di 8,34 miliardi (in aumento dell'1,5%).

KT&G ha annunciato significativi ritorni per gli azionisti, inclusa l'immediata cancellazione di azioni proprie per un valore di 360 miliardi di KRW, riacquisti pianificati di azioni per 300 miliardi di KRW e total returns per gli azionisti di 1,1 trilioni di KRW o superiori per il 2025. L'azienda ha raggiunto un ROE del 12,2% nel 2024 e ha fissato obiettivi di crescita del 5%+ per il fatturato e del 6%+ per l'utile operativo nel 2025.

KT&G reportó resultados financieros sólidos para 2024, con ingresos consolidados alcanzando KRW 5.91 billones (un aumento del 0.8% interanual) y un beneficio operativo de KRW 1.185 billones (un aumento del 1.5% interanual). Bajo el liderazgo del nuevo CEO Kyung-man Bang, el segmento de tabacos mostró un crecimiento impresionante con ingresos de KRW 3.906 billones (un aumento del 8.1%) y un beneficio operativo de KRW 1.082 billones (un incremento del 10.7%).

Las ventas globales de cigarrillos de la compañía lograron un crecimiento del 10.3% interanual, alcanzando ingresos récord de KRW 1.45 billones. El segmento de Productos de Nueva Generación también mostró tendencias positivas, con ventas nacionales de 6.15 mil millones de sticks (un aumento del 7.7%) y ventas globales de 8.34 mil millones (un crecimiento del 1.5%).

KT&G anunció importantes retornos para los accionistas, incluida la cancelación inmediata de acciones en tesorería por un valor de KRW 360 mil millones, recompras de acciones planificadas por KRW 300 mil millones y retornos totales para los accionistas de KRW 1.1 billones o más para 2025. La compañía logró un ROE del 12.2% en 2024 y estableció objetivos de crecimiento del 5%+ para los ingresos y del 6%+ para el beneficio operativo en 2025.

KT&G는 2024년 강력한 재무 결과를 보고했으며, 연결 매출은 5.91조 원에 달해(전년 대비 0.8% 증가) 운영 이익은 1.185조 원에 달해(전년 대비 1.5% 증가)로 나타났습니다. 새로운 CEO인 경만 방의 리더십 아래, 담배 부문은 3.906조 원의 매출(8.1% 증가)과 1.082조 원의 운영 이익(10.7% 증가)을 기록하며 인상적인 성장을 보였습니다.

회사의 전세계 담배 판매는 전년 대비 10.3% 증가하며, 매출은 1.45조 원의 기록을 세웠습니다. 차세대 제품 부문 또한 긍정적인 추세를 보여주었으며, 국내 판매량은 61.5억 개비(7.7% 증가) 및 글로벌 판매량은 83.4억 개비(1.5% 증가)를 기록했습니다.

KT&G는 3600억 원 가액의 자사주 매입 즉시 취소, 3000억 원의 주식 재매입 계획 및 2025년을 위한 총 주주 환원액을 1.1조 원 이상으로 발표했습니다. 회사는 2024년에 12.2%의 ROE를 달성하였고, 2025년 매출 5% 이상, 운영 이익 6% 이상의 성장 목표를 설정했습니다.

KT&G a enregistré des résultats financiers solides pour 2024, avec des revenus consolidés atteignant 5,91 trillions de KRW (en hausse de 0,8% par rapport à l'année précédente) et un bénéfice d'exploitation de 1,185 trillion de KRW (en hausse de 1,5% sur un an). Sous la direction du nouveau PDG Kyung-man Bang, le segment du tabac a montré une croissance impressionnante avec des revenus de 3,906 trillions de KRW (en hausse de 8,1%) et un bénéfice d'exploitation de 1,082 trillion de KRW (en hausse de 10,7%).

Les ventes mondiales de cigarettes de l'entreprise ont atteint une croissance de 10,3% par rapport à l'année précédente, avec des revenus atteignant un record de 1,45 trillion de KRW. Le segment des Produits de Nouvelle Génération a également montré des tendances positives, avec des ventes domestiques de 6,15 milliards de sticks (en hausse de 7,7%) et des ventes mondiales de 8,34 milliards (en hausse de 1,5%).

KT&G a annoncé des retours significatifs pour les actionnaires, y compris l'annulation immédiate d'actions propres d'une valeur de 360 milliards de KRW, des rachats d'actions prévus de 300 milliards de KRW et des retours totaux pour les actionnaires d'au moins 1,1 trillion de KRW pour 2025. L'entreprise a atteint un ROE de 12,2% en 2024 et a fixé des objectifs de croissance de plus de 5% pour les revenus et de plus de 6% pour le bénéfice d'exploitation en 2025.

KT&G berichtete über starke finanzielle Ergebnisse für 2024, mit einem konsolidierten Umsatz von 5,91 Billionen KRW (ein Anstieg von 0,8% im Vergleich zum Vorjahr) und einem Betriebsgewinn von 1,185 Billionen KRW (ein Anstieg von 1,5% im Jahresvergleich). Unter der Leitung des neuen CEO Kyung-man Bang zeigte das Tabaksegment ein beeindruckendes Wachstum mit einem Umsatz von 3,906 Billionen KRW (ein Anstieg von 8,1%) und einem Betriebsgewinn von 1,082 Billionen KRW (ein Anstieg von 10,7%).

Die globalen Zigarettenverkäufe des Unternehmens erreichten ein Wachstum von 10,3% im Jahresvergleich, wobei die Einnahmen einen Rekord von 1,45 Billionen KRW erreichten. Auch das Segment der Next Generation Products zeigte positive Trends, mit inländischen Stickzahlen von 6,15 Milliarden (ein Anstieg von 7,7%) und globalen Verkäufen von 8,34 Milliarden (ein Anstieg von 1,5%).

KT&G kündigte signifikante Rückflüsse für die Aktionäre an, einschließlich der sofortigen Stornierung von eigenen Aktien im Wert von 360 Milliarden KRW, geplanter Aktienrückkäufe von 300 Milliarden KRW und einem Gesamtrückfluss für die Aktionäre von 1,1 Billionen KRW oder mehr für 2025. Das Unternehmen erreichte 2024 eine Eigenkapitalrendite von 12,2% und setzte Wachstumsziele von über 5% für den Umsatz und über 6% für den Betriebsgewinn im Jahr 2025.

Positive
  • Record full-year revenue of KRW 5.91 trillion (up 0.8% YoY)
  • Operating profit growth of 1.5% to KRW 1.185 trillion
  • Tobacco segment operating profit up 10.7% to KRW 1.082 trillion
  • Global cigarette sales volume up 10.3% YoY
  • ROE improved to 12.2% (up 2.3 percentage points)
  • Announced KRW 1.1 trillion shareholder return plan for 2025
  • Increased annual dividend to KRW 5,400 per share
Negative
  • None.
  • New CEO's fundamental competitiveness improvement and financial structure optimization leads to parallel growth of full-year revenue and operating profit 
  • 100% total shareholder return and 12.2% ROE in 2024, Active shareholder returns of 1.1 trillion or more for 2025

SEOUL, South Korea, Feb. 6, 2025 /PRNewswire/ -- 

KT&G Corporation ("KT&G" or the "Company") (KRX: 033780), South Korea's leading tobacco manufacturer, announced its 2024 fourth-quarter and full-year results in an earnings report session held on the 6th of Feb., also presenting its 2025 business goals and shareholder return plans.

KT&G reported consolidated revenue of KRW 1.557 trillion and operating profit of KRW 208.5 billion in the fourth quarter, an 8.0% and 5.3% growth year on year, respectively. KT&G also reported record full-year revenue of KRW 5.91 trillion, a 0.8% growth year on year, while operating profit grew 1.5% and reached KRW 1.185 trillion.

After the new CEO, Kyung-man Bang, took office in March 2024, KT&G achieved balanced growth by increasing fundamental competitiveness and optimization of financial structure. The tobacco segment saw a revenue of KRW 3.906 trillion and operating profit of KRW 1.082 trillion, a respective YoY growth of 8.1% and 10.7%. The continued growth of global sales volume and effective pricing strategies combined led to such results.

The annual global cigarette segment sales, focused on KT&G's flagship brand ESSE, achieved a 10.3% growth YoY and an all-time high sales volume. The annual revenue also grew by 28%, resulting in historical high of KRW 1.45 trillion. Qualitative growth was realized, including 84.2% operating profit growth.

The Next Generation Product (NGP) segment continued to show growth trends, with stick sales volume going up in both domestic and global markets. In 2024, KT&G sold 6.15 billion sticks in the domestic market and 8.34 billion sticks in the global market, which is equivalent to YoY growth of 7.7% and 1.5%, respectively.

KT&G plans to continue boosting its performance in 2025 through heightened competency of its tobacco segment; increased efficiency through an economic manufacturing system; and financial optimization focusing on profitability. Accordingly, KT&G has set growth targets of 5% or higher for consolidated revenue and 6% or higher for operating profit.

Furthermore, KT&G decided to immediately cancel treasury shares worth approx. KRW 360 billion (approx. 2.5% of total issued shares). Within the year, KT&G plans to repurchase and cancel shares worth KRW 300 billion or more and utilize the funds from the liquidation of non-core assets to cancel a total of at least 4.5% of treasury stock. KT&G is planning shareholder returns of KRW 1.1 trillion or higher, which includes a KRW 600 billion dividend payout.

Furthermore, the board resolved to set the 2024 year-end dividend at KRW 4,200 per share, while setting the record date as February 28th. The annual dividend per share including the interim dividend of KRW 1,200 previously paid is KRW 5,400, up KRW 200 from the previous year. In 2024, KT&G moved the record date from the end of the year to date determined by the board. This decision was made to allow investors to acquire shares after confirming the dividend. KT&G intends to continue the growing dividend payout trend in 2025.

After CEO Kyung-man Bang took office, KT&G revealed its Corporate Value-up Plan to be implemented between 2024 and 2027. The plan includes a cash return of approx. KRW 3.7 trillion, which is composed of total cash dividend of KRW 2.4 trillion and stock repurchases worth KRW 1.3 trillion, and cancellation of 20% or more of issued shares comprising of newly acquired and treasury shares. To fulfill the corporate value-up plan, KT&G executed approx. KRW 1.1 trillion cash returns in 2024 through repurchase of stocks worth KRW 550 billion and dividend payout of KRW 590 billion, achieving 100% total shareholder returns. KT&G also canceled stocks amounting to 6.3% of total issued shares including 3.7% newly repurchased stocks (worth approx. KRW 550 billion) and 2.6% already held by the company (worth approx. KRW 310 billion). KT&G's ROE of 12.2%, a 2.3%p YoY growth, can be attributed to enhanced profitability and capital efficiency.

A KT&G spokesperson said that, "In 2024, KT&G saw meaningful growth of revenue and operating profit that can be attributed to the growth of the company's major business area, the tobacco business. Despite the heightened uncertainty in both domestic and global markets in 2025, KT&G will continue the upward performance trend by strengthening our fundamental competitiveness based on our global business while executing the finest shareholder return programs to provide greater value for our shareholders."

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SOURCE KT&G Corporation

FAQ

What are KT&G's (KTCIY) financial results for full-year 2024?

KT&G reported record full-year revenue of KRW 5.91 trillion (up 0.8% YoY) and operating profit of KRW 1.185 trillion (up 1.5% YoY) in 2024.

How much is KT&G's shareholder return plan for 2025?

KT&G plans to return at least KRW 1.1 trillion to shareholders in 2025, including KRW 600 billion in dividends and share repurchases worth KRW 300 billion or more.

What is KT&G's dividend per share for 2024?

KT&G's total dividend for 2024 is KRW 5,400 per share, consisting of KRW 4,200 year-end dividend and KRW 1,200 interim dividend, an increase of KRW 200 from the previous year.

What was KT&G's global cigarette sales growth in 2024?

KT&G's global cigarette segment achieved a 10.3% year-over-year growth in sales volume and a 28% increase in revenue, reaching KRW 1.45 trillion.

What are KT&G's growth targets for 2025?

KT&G has set targets of 5% or higher growth for consolidated revenue and 6% or higher growth for operating profit in 2025.

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