Korean Tobacco Reports Increase in Q2 Earnings

Aug.31.2022
Korean Tobacco Reports Increase in Q2 Earnings
KT&G's Q2 revenue rose 10.9%, boosted by overseas sales growth and higher real estate profits. Traditional cigarette sales also increased.

The latest financial report released by Korean Tobacco shows that their Q2 2022 revenue was KRW 1.42 trillion (approximately RMB 0.0052 per Korean won), a growth of 10.9% compared to the same period last year. The comprehensive operating profit was KRW 327.6 billion, an increase of 1% compared to the same period last year. Net profit reached KRW 330.1 billion, a year-on-year increase of 34%.


The company reported an increase in overall revenue, attributed to growth in overseas market sales and an improvement in real estate profit margins. The company's traditional cigarette business saw growth, benefiting from emerging markets such as South America and improved sales in Indonesia. Additionally, the company's heated tobacco product increased its market share in the domestic market from 40.4% in 2021 to 47% in 2022.


Currently, heated tobacco products account for 16.7% of all tobacco sales in South Korea. The company predicts that despite rising interest rates and soaring commodity prices, their traditional cigarette and electronic cigarette businesses will continue to grow in the coming months.


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