On August 7, KT&G (CEO Bang Kyung-man) announced its performance in the second quarter of 2025 at a corporate briefing.

According to the company, consolidated revenue in Q2 reached KRW 1.5479 trillion and operating profit stood at KRW 349.8 billion, marking year-on-year increases of 8.7% and 8.6%, respectively. This achievement continues the streak of simultaneous revenue and operating profit growth of three consecutive quarters since Q4 last year, while H1 revenue surpassed KRW 3 trillion for the first time in company history.

The tobacco sector—KT&G’s core business—reported revenue of KRW 1.0906 trillion and operating profit of KRW 321.8 billion, up 10% and 1.6% year-on-year, respectively, driven by robust global business growth.

In particular, the company achieved “triple growth” of revenue, operating profit, and sales volume in its overseas cigarette sales for the fifth consecutive quarter—with Q2 revenue climbing 30.6% year-on-year to KRW 469 billion. Sales volume rose 9.1% to 16.7 billion cigarettes, setting new all-time highs for both quarterly revenue and shipments. Excluding the reversal of provisions for doubtful accounts from last year, adjusted operating profit in Q2 surged 51.1% year-on-year, reinforcing the company’s strong growth momentum.

On August 7, KT&G (CEO Bang Kyung-man) announced its performance in the second quarter of 2025 at a corporate briefing.

According to the company, consolidated revenue in Q2 reached KRW 1.5479 trillion and operating profit stood at KRW 349.8 billion, marking year-on-year increases of 8.7% and 8.6%, respectively. This achievement continues the streak of simultaneous revenue and operating profit growth of three consecutive quarters since Q4 last year, while H1 revenue surpassed KRW 3 trillion for the first time in company history.

The tobacco sector—KT&G’s core business—reported revenue of KRW 1.0906 trillion and operating profit of KRW 321.8 billion, up 10% and 1.6% year-on-year, respectively, driven by robust global business growth.

In particular, the company achieved “triple growth” of revenue, operating profit, and sales volume in its overseas cigarette sales for the fifth consecutive quarter—with Q2 revenue climbing 30.6% year-on-year to KRW 469 billion. Sales volume rose 9.1% to 16.7 billion cigarettes, setting new all-time highs for both quarterly revenue and shipments. Excluding the reversal of provisions for doubtful accounts from last year, adjusted operating profit in Q2 surged 51.1% year-on-year, reinforcing the company’s strong growth momentum.

These results highlight the tangible success of the global onsite-sufficient value chain strategy and the transition to a CIC system, both top priorities championed by CEO Bang Kyung-man since his appointment last year. Growth was further bolstered by new product launches with a competitive edge—centered on the flagship brand “Esse”—in major markets across Asia-Pacific, Central Asia, and Latin America, as well as by expanding the range of premium products and implementing price increases backed by stronger brand power. With local raw material sourcing systems set to be completed at overseas factories in the second half of this year, KT&G expects further margin improvements and accelerated profit growth.

In the domestic NGP (Next-Generation Product) sector, growing sales of “lil Able” propelled H1 market share to 45.8%. Overseas stick sales also rebounded, rising 4.2% year-on-year to 2.2 billion units.

Meanwhile, KGC Ginseng Corporation posted KRW 6.2 billion in operating profit from health functional foods, achieving a turnaround despite domestic recession through profitability-focused strategies such as prioritizing marketing cost efficiency.

These results highlight the tangible success of the global onsite-sufficient value chain strategy and the transition to a CIC system, both top priorities championed by CEO Bang Kyung-man since his appointment last year. Growth was further bolstered by new product launches with a competitive edge—centered on the flagship brand “Esse”—in major markets across Asia-Pacific, Central Asia, and Latin America, as well as by expanding the range of premium products and implementing price increases backed by stronger brand power. With local raw material sourcing systems set to be completed at overseas factories in the second half of this year, KT&G expects further margin improvements and accelerated profit growth.

In the domestic NGP (Next-Generation Product) sector, growing sales of “lil Able” propelled H1 market share to 45.8%. Overseas stick sales also rebounded, rising 4.2% year-on-year to 2.2 billion units.

Meanwhile, KGC Ginseng Corporation posted KRW 6.2 billion in operating profit from health functional foods, achieving a turnaround despite domestic recession through profitability-focused strategies such as prioritizing marketing cost efficiency.

(Photo) KT&G Logo