KT&G (033780) Q1 2026 earnings summary

Executive summary

• Achieved record-high global cigarette revenue in Q1 2026, with strong triple growth in volume, revenue, and operating profit year-over-year, trends expected to continue throughout the year.

• All business segments—tobacco, health functional food (HFF), and real estate—delivered revenue and profit growth, with significant progress in global expansion and a new shareholder return policy emphasizing stronger dividends.

• Successfully navigated Middle East tensions by securing alternative logistics routes and maintaining solid sales.

• Completed full cancellation of treasury shares worth KRW 1.8 trillion, exceeding prior targets and reducing outstanding shares to 103.8 million.

Financial highlights

• Q1 2026 consolidated revenue rose 14.3% year-over-year to KRW 1.7036 trillion.

• Operating profit increased 27.6% year-over-year to KRW 364.5 billion.

• Net income surged 46.6% year-over-year to KRW 378.2 billion.

• EPS grew 54.7% year-over-year to KRW 3,666.

• EBITDA rose 25% year-over-year to KRW 442.7 billion, with a margin of 26%.

Outlook and guidance

• Overseas cigarette business and triple growth in volume, revenue, and operating profit are expected to persist for the remainder of 2026.

• NGP business to launch new products each quarter, expanding direct business in APAC and Eurasia.

• HFF business to focus on both revenue and margin growth, emphasizing high-margin channels and product innovation.

• New mid-to-long-term shareholder return policy with stronger dividends to be announced in H2 2026.

• Ongoing investments in production capacity, digital transformation, and ESG initiatives to support long-term competitiveness.