KT&G (033780) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of KRW 1,905.2bn (+4.3% YoY) and operating profit of KRW 530.1bn (+13.9%); tobacco business also set quarterly revenue and operating-profit records.

• Tobacco growth, stronger health-functional food profitability and real-estate cost savings supported results; consolidated net income was KRW 114.1bn versus KRW 272.9bn a year earlier.

Financial highlights

• Revenue was KRW 1,905.2bn (+4.3% YoY); operating profit was KRW 530.1bn (+13.9%); EBITDA was KRW 606.2bn (+12.2%).

• Earnings highlights showed net income of KRW 104.1bn (-75.1% YoY) and EPS of KRW 1,022 (-73.8%); the condensed consolidated income statement listed net income of KRW 114.1bn versus KRW 272.9bn.

• Consolidated gross profit was KRW 998.4bn (+11.1% YoY); gross margin was 51.7% versus 45.4%, and operating margin was 27.8% versus 25.5%.

• Consolidated other income/expenses were KRW 358.4bn of expense versus KRW 39.9bn of income in 3Q'25.

Segment performance

• Tobacco revenue reached a record KRW 1,306.5bn (+6.0% YoY); operating profit was a record KRW 425.5bn (+14.4%), with a 32.6% margin.

• International combustible-cigarette volume, revenue and operating profit grew 6.2%, 10.5% and 21.9% YoY, respectively; volume and revenue reached quarterly highs.

• NGP revenue rose to KRW 294.0bn from KRW 279.1bn; Korea stick volume grew 6.8% YoY and stick share reached 49.1%, up 3.2pp.

• Health-functional food revenue increased 3.4% to KRW 372.2bn and operating profit rose 12.2% to KRW 80.1bn; growth came from premium and value brands and improved regional profitability.

• Real-estate revenue fell 13.3% to KRW 126.7bn as projects neared completion; operating profit increased 19.8% to KRW 24.8bn on lower costs.