KT&G’s Q2 OP up 1% to $250 mn with solid cigarette sales despite setbacks

2022.08.04 14:41:19

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KT&G’s consolidated operating profit for the second quarter reached 327.6 billion won ($249.7 million), up by 1 percent from a year earlier, the Korean tobacco monopoly said in a regulatory filing on Thursday.

KT&G shares fell slightly to trade at 80,800 won on Thursday.

Revenue for the April-June period amounted to 1.41 trillion won, up by 10.9 percent from a year ago, with net profit gaining 34 percent to 330.1 billion won.

Sales increased thanks to a solid performance of overseas tobacco business and real estate margins, the company said.

In particular, overseas sales from the company’s traditional cigarette business surged 47.1 percent, driven by the growth of Latin America and other emerging markets and improved sales in Indonesia.

However, KT&G’s ginseng subsidiary saw a 53.8 percent drop in second-quarter operating profit due to weak demand in Korea and sluggish exports affected by pandemic lockdowns in China.

Despite difficult external conditions such as interest rate hikes and soaring commodity prices, KT&G’s mainstay traditional and electronic cigarette business will continue strong growth in the months ahead, a company official said.

By Pulse

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