KT&G (CEO Bang Kyung-man) announced its business results for the first quarter of 2025 during an investor relations briefing held on May 8.

For the first quarter, KT&G reported consolidated revenue of ₩1.4911 trillion (up 15.4% YoY) and operating profit of ₩285.6 billion (up 20.7% YoY). The company achieved double-digit growth in both metrics, with profit increasing at a higher rate than revenue, which underscores its success in executing a profitability-focused strategy.

In the tobacco division—KT&G’s core business sector—strong momentum in overseas markets drove Q1 revenue to ₩988 billion (up 15.3% YoY), while operating profit rose to ₩252.9 billion (up 22.4% YoY). Notably, the overseas cigarette business achieved “triple growth” for the fourth consecutive quarter, with simultaneous increases in operating profit, revenue, and shipment volume, driven by price hikes and higher sales volumes across key markets. Operating profit from overseas cigarettes soared 312.5% YoY, while revenue surged 53.9% to ₩449.1 billion, marking the highest quarterly figure in the company’s history.

This performance reflects the results of CEO Bang Kyung-man’s global, locally integrated value chain strategy, which has been actively implemented since his appointment last year. The new factory in Kazakhstan, completed in April, and the new plant under construction in Indonesia—scheduled for completion next year—are expected to further accelerate growth in KT&G’s global business.

In the next-generation product (NGP) business, led by “lil hybrid,” domestic sales grew by 6.5% YoY. Meanwhile, the health supplements division, operated by KGC Ginseng Corporation, also saw a 1.9% YoY increase in revenue, supported by holiday promotions in Korea and continued growth in key overseas markets despite a sluggish economic environment. The real estate division also posted revenue of ₩100.4 billion and operating profit of ₩10.4 billion, reflecting the progress of ongoing development projects and contributing to the group’s overall profitability.

KT&G has announced a shareholder return plan of ₩3.7 trillion from 2024 to 2027, which includes dividends and share buybacks. The plan also entails retiring over 20% of total outstanding shares, including newly acquired treasury stock, one of the most ambitious shareholder value enhancement strategies in the Korean market. In 2024, KT&G returned approximately ₩1.1 trillion to shareholders, achieving a 100% total shareholder return rate and retiring 6.3% of total shares outstanding. Continuing this initiative in 2025, the company retired ₩360 billion worth of treasury stock in the first quarter, equivalent to 2.5% of its outstanding shares, reinforcing its commitment to shareholder value.

A spokesperson of KT&G stated, “Despite a challenging environment marked by exchange rate fluctuations and domestic market recessions, we achieved growth in both revenue and operating profit by reinforcing the competitiveness of our core business and focusing on the global cigarette segment. We will continue to strengthen our global competitiveness and secure future growth by expanding into ‘modern products’ beyond traditional cigarettes.”