On November 3rd, according to a report by the South Korean news agency Yonhap, the leading tobacco company in South Korea, KT&G, announced on Thursday that its third-quarter net profits increased by 29% year-on-year due to increased exports and a weakened South Korean won.
The company stated in a press release that their net profit for the three months ending in September increased from 359.58 billion South Korean won to 463.14 billion South Korean won (325 million US dollars) compared to the same period last year.
The statement declares that due to an increase in the sales of popular products in the domestic market and an increase in overseas sales amid weakening of the Korean won against the US dollar, the revenue has received a boost.
The weakness of the South Korean won can lead to an increase in the value of returns measured in US dollars when repatriated back into the home currency. According to data from the Bank of Korea, the average exchange rate of the US dollar in the third quarter rose from 1157 won a year ago to 1338 won.
Heat-not-burn" or "smokeless tobacco" products are electronic devices that contain tobacco and are different from electronic cigarettes. These products heat the tobacco to high temperatures without combustion, thereby preventing the production of smoke that users inhale.
In the third quarter, operating profit decreased by 2.7% from 417.03 billion Korean won to 405.61 billion Korean won compared to the same period last year. During this period, sales increased by 8.5% from 1.49 trillion Korean won to 1.62 trillion Korean won.
In the domestic market, KT&G sold a total of 11.05 billion cigarettes in the third quarter, representing a 0.4% decrease compared to the same period last year, when sales reached 11.09 billion cigarettes. The company holds a 65% share of the local cigarette market.
Due to the continuously increasing demand from emerging markets, the company's overseas sales have grown from 9.4 billion units one year ago to 12.2 billion units in September, representing a 30% increase.
Currently, 90% of KT&G's total sales come from its cigarette business division, while the remaining 10% come from its heat-not-burn division.
From January to September, net income increased by 21% from the same period last year, reaching 1.06 trillion won from 878.58 billion won.
A product called "Lil SOLID 2.0" has been developed that can be heated without burning. The image source is the Korean news agency Yonhap.
Declaration:
This article is compiled from third-party information and is intended for industry communication and learning purposes only.
This article does not represent the views of 2FIRSTS and 2FIRSTS cannot confirm the truthfulness and accuracy of the content. The translation of this article is solely for industry exchange and research.
Due to limitations in the expertise of the translator, the translated article may not fully reflect the original text. Please refer to the original article for accuracy.
2FIRSTS maintains complete consistency with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and foreign-related expressions and stances.
The copyright of the compiled information belongs to the original media and author. If there is any infringement, please contact us for deletion.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
