Tobacco company KT&G released on the 4th of this month their consolidated operating profit for the second quarter of this year, which amounted to 372.6 billion South Korean Won, showing a 1% increase compared to the same period last year. They also reported a sales growth of 11%, reaching 1.41 trillion South Korean Won. Their net profit increased by 34% to 330.1 billion South Korean Won.
Overseas subsidiaries experienced a 47% growth in sales, particularly driven by an increase in sales of traditional cigarettes in Latin America and Indonesia. The market share for electronic cigarettes in a cigarette-shaped form also increased by 7.4 percentage points compared to the same period last year, reaching 47% and maintaining its position as the leading brand in South Korea.
According to a report from the South Korean news agency, KGC Ginseng Corporation, a subsidiary of the company, has experienced a 54% decrease in operating profit, totaling to 3 billion Korean won. The company attributed this decline to a sluggish economy, reduced demand for futures, and the effects of China's lockdown measures, which have resulted in lower sales in the region.
A KT&G executive stated, "Despite facing challenges such as rising interest rates and material costs, our core business areas centered around traditional and electronic cigarettes will continue to grow steadily domestically and internationally in the second half of the year." They plan to proceed accordingly.
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