KT&G (033780) Q1 2025 earnings summary

Executive summary

• Achieved double-digit growth in Q1 2025 revenue and operating profit, led by record-high Global CC business and improved product mix and pricing.

• Adjusted operating profit surged 45.1% year-over-year after excluding one-off early retirement costs.

• Net income declined 9.7% to KRW 257.9 billion due to currency effects and higher expenses.

• Launched a co-CEO system to tailor domestic and overseas strategies, focusing on profitability and localized brand expansion.

• Initiated projects for future growth, including modern product launches, expanded partnerships, and multi-category strategy.

Financial highlights

• Q1 consolidated revenue rose 15.4% year-over-year to KRW 1.4911 trillion; operating profit increased 20.7% to KRW 285.6 billion; adjusted operating profit up 45.1% to KRW 343.2 billion.

• Net income: KRW 257.9 billion (-9.7% YoY); EPS: KRW 2,370 (-4.7% YoY); EBITDA: KRW 354.3 billion (+19.1% YoY); EBITDA margin: 23.8%.

• Gross profit margin: 50.5% (up from 49.8% YoY); operating profit margin: 19.2% (up from 18.3% YoY); net margin: 17.3%.

• Total assets increased to W 14,067,378 million; total equity decreased to W 9,187,577 million at March 31, 2025.

• Cash and cash equivalents at March 31: KRW 1,018.7 billion.

Outlook and guidance

• No changes to annual guidance; company remains on track to achieve previously communicated targets.

• Will review Q2 performance and market conditions for potential upward revisions.

• Issued USD 300 million in unsecured senior bonds in May 2025 to enhance corporate value and secure investment funds.

• Expects 2025 to be a year of high uncertainty and risk but is committed to innovation and growth.

• Plans to provide a joint guarantee of W 67 billion for a real estate project loan.