KT&G Reports Record Q3 Financial Performance in 2023
South Korean tobacco manufacturer, KT&G, has announced its financial performance for the third quarter of 2023. According to KT&G's report, the company achieved a record-breaking revenue of 16.9 trillion Korean won (approximately 1.29 billion US dollars) as of September 30th, 2023, representing a 4% increase from the same period last year. Despite facing cost pressures, operating profit still grew by 0.3% to 406.7 billion Korean won (approximately 300 million US dollars).
According to reports, KT&G's strong performance in the cigarette business has driven revenue growth, with total cigarette revenue, including overseas and domestic sales, surging to 972.7 billion South Korean Won (approximately $730 million), an increase of 3% compared to the previous year. The operating profit from combustible cigarettes reached 269.4 billion South Korean Won (approximately $200 million), a growth of 0.6% year-on-year.
Overseas cigarette sales have witnessed remarkable growth in key indicators such as sales volume and revenue. KT&G, the overseas cigarette manufacturer, saw its overseas cigarette revenue increase by 26.3% to 321.6 billion Korean won (approximately 240 million US dollars), with sales reaching 14.82 billion units, marking a 21% year-on-year growth. The double-digit growth in overseas cigarette revenue and sales volume can mainly be attributed to strategic pricing and a comprehensive increase in both exports and the number of overseas subsidiaries.
The domestic and international sales of KT&G's heated non-burning business have also seen double-digit growth. The domestic market sales volume reached 1.45 billion units, while the overseas market sales volume reached 2.03 billion units, representing a year-on-year growth of 13.3% and 22.3% respectively.
In the third quarter, KT&G focused on improving its financial performance by strengthening its global competitiveness in its core business areas. In September, KT&G held an investment support ceremony with the Indonesian Ministry of Investment for the construction of a new factory. In October, the company began construction on a new factory in Kazakhstan to produce both heated non-combustible tobacco and combustible cigarette products.
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