KT&G (033780) Q4 2024 earnings summary

Executive summary

• Achieved record-high consolidated revenue of KRW 5.91 trillion for FY24, up 0.8% year-over-year, with operating profit rising 1.5% and net income surging 23.8%.

• Q4 revenue grew 8% YoY to KRW 1.5571 trillion; operating profit up 5.3% YoY to KRW 208.5 billion; net income jumped 167.2% YoY to KRW 301.7 billion.

• Robust performance in Global CC and Next Generation Products (NGP) segments drove topline and profitability improvements.

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

• Total shareholder return ratio reached nearly 100% of net income, with KRW 1.1 trillion in cash returns and 8.46 million shares cancelled.

Financial highlights

• FY24 consolidated revenue: KRW 5.91 trillion (+0.8% YoY); operating profit: KRW 1.1848 trillion (+1.5% YoY); net income: KRW 1,141.6 billion (+23.8% YoY); EPS: KRW 10,167 (+29.6% YoY).

• Q4 revenue: KRW 1.5571 trillion (+8% 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 1.4350 trillion (24.3% margin, +1.9% YoY).

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

• Dividend payout ratio at 52%; annual DPS at KRW 5,400, a record high.

Outlook and guidance

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

• Shareholder return plans include cash dividends totaling KRW 600 billion and share buyback/cancellation of at least KRW 300 billion.

• Targeting a shareholder return ratio of 100%+ and further share cancellation (over 4.5% of outstanding shares).

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

• Plans to execute over KRW 1.1 trillion in cash returns.