KT&G (033780) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly and nine-month operating profit and revenue, driven by robust global CC and tobacco business growth, as well as improved next-generation products (NGP) performance.

• Global conventional cigarettes (CC) posted record-high performance for three consecutive quarters, with double-digit growth in both volume (+12.9%) and average selling price (+10.7%).

• Consolidated sales for the first nine months of 2025 rose 11.8% year-over-year to KRW 4,865.9 billion, with operating income at KRW 1,100.7 billion and net income at KRW 818.2 billion.

• Strategic partnerships and joint acquisitions, including with Altria and Another Snus Factory, to expand the nicotine pouch business globally from 2026.

• Maintained a robust financial position, with total assets of KRW 14,779.2 billion and equity of KRW 9,168.0 billion as of September 30, 2025.

Financial highlights

• Q3 consolidated revenue rose 11.6% year-over-year to KRW 1.83 trillion, with operating profit up 11.4% to KRW 465.3 billion.

• Net income surged 73.4% year-over-year to KRW 418.7 billion, and EPS climbed 81.7% to KRW 3,898.

• EBITDA grew 12.3% to KRW 540.5 billion, with a margin of 29.6%.

• Tobacco segment sales grew 14.4% year-over-year to KRW 3,310.8 billion, maintaining a domestic market share of 68.1%.

• Health functional foods sales declined 8.6% to KRW 894.8 billion, while real estate sales surged 74.1% to KRW 390.3 billion.

Outlook and guidance

• Full-year 2025 revenue and operating profit guidance raised to anticipate double-digit growth year-over-year, reflecting strong global market momentum.

• Plans for global expansion of nicotine pouch business beyond Nordics into Western Europe, Middle East, Africa, Asia, and North America starting next year.

• Ongoing investments in production capacity, digital transformation, and a minimum annual dividend target of KRW 6,000 per share through 2027.