On May 8th, the South Korean tobacco company KT&G announced its first-quarter performance for 2025. According to the report, the company's consolidated revenue for the first quarter reached 1.5 trillion Korean won (1.07 billion USD), a year-on-year increase of 15.4%; consolidated operating profit was 285.6 billion Korean won (200 million USD), a year-on-year increase of 20.7%; and net profit was 257.9 billion Korean won (180 million USD), a year-on-year decrease of 9.7%.
In terms of the cigarette business, revenue increased by 15.3% year-on-year to reach 988 billion Korean won (7 million US dollars), while operating profit increased by 22.4% to reach 252.9 billion Korean won (1.8 million US dollars). Price increases and sales growth in key markets have led to consecutive growth in operating profit, sales volume, and revenue for the global cigarette business over four consecutive quarters.
In terms of new tobacco products, revenue has slightly decreased compared to the same period the previous year. The report indicates that this decrease is mainly due to equipment supply chain issues causing temporary delays in equipment supply, as well as restrictions on overseas business sales. However, the new tobacco business represented by the heated tobacco product "Lil Hybrid" achieved a 6.5% year-on-year revenue growth in the South Korean market.
KT&G stated that the completion of the new factory in Kazakhstan and the upcoming opening of a new factory in Indonesia next year are expected to further accelerate the growth of its global business.
A spokesperson for KT&G stated:
"Despite facing unfavorable business conditions such as a sharp increase in exchange rates and a slowdown in the domestic economy, the company achieved growth in both revenue and operating profit by focusing on enhancing the competitiveness of its core business profitability."
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