KT&G (033780) Q4 2024 earnings summary

Executive summary

• 2024 saw record-high consolidated revenue of KRW 5.91 trillion, up 0.8% YoY, with operating profit rising 1.5% and net income surging 23.8%, driven by global CC and NGP businesses.

• Q4 revenue grew 8% YoY to KRW 1.56 trillion; operating profit up 5.3% YoY; net income jumped 167.2% YoY.

• Enhanced capital efficiency with ROE at 12.2%, up 2.3pp from 2023.

• Shareholder returns prioritized, with nearly 100% of net income returned, KRW 1.1 trillion in cash returns, and 8.46 million shares cancelled.

• Consolidated financial statements for 2024 and 2023 were audited with an unqualified opinion.

Financial highlights

• FY24 consolidated revenue: KRW 5.91 trillion (+0.8% YoY); operating profit: KRW 1.18 trillion (+1.5% YoY); net income: KRW 1,141.6 billion (+23.8% YoY); EPS: KRW 10,167 (+29.6% YoY).

• Q4 revenue: KRW 1.56 trillion (+8.0% YoY); operating profit: KRW 208.5 billion (+5.3% YoY); net income: KRW 301.7 billion (+167.2% YoY); EPS: KRW 2,696 (+152.7% YoY).

• EBITDA for FY24: KRW 1,435 billion (24.3% margin, +1.9% YoY).

• Gross profit margin for FY24: 48.0%; operating profit margin: 26.4%; net income margin: 19.3%.

• Total assets as of December 31, 2024 were KRW 13,925.2 billion, with cash and cash equivalents at KRW 1,140.8 billion.

Outlook and guidance

• 2025 guidance targets 5%-7% revenue growth and 6%-8% operating profit growth YoY.

• Shareholder return plans include KRW 600 billion in cash dividends and at least KRW 300 billion in share buybacks/cancellations.

• Focus on global market penetration and core tobacco business to reinforce competitiveness.

• Monitoring climate-related risks and regulatory changes, including global minimum tax rules, with no material near-term impact expected.

• Plans for new bond issuance and capital contributions to subsidiaries in early 2025.