보도자료 | 뉴스룸 | 미디어 | 313733

KT&G (CEO Bang Kyung-man) hosted its Q3 2026 earnings presentation alongside a Capital Markets Day on November 5 to report its quarterly financial results and outline its mid- to long-term capital allocation and growth strategies. During the earnings presentation, KT&G announced that consolidated Q3 revenue rose 4.3% year-on-year (YoY) to KRW 1,905.2 billion, driven by resilient core business growth and a profitability-centric strategy. The company’s operating profit also climbed 13.9% YoY to KRW 530.1 billion, representing the highest quarterly performance in the company’s history. The Tobacco Business Division spearheaded the record results, generating KRW 1,306.5 billion in revenue, up 6.0% YoY, and KRW 425.5 billion in operating profit, up 14.4% YoY. Divisional operating profit margin rose to 32.6%, up 2.4 percentage points from Q3 2025. Within the division, the overseas combustible cigarette business recorded its 10th consecutive quarter of simultaneous growth across sales volume, revenue, and operating profit, achieving all-time quarterly highs in both volume and top-line sales. The Next Generation Products ( NGP ) business also drove margin-oriented growth by defending its top domestic market share and increasing the sales mix of higher-priced sticks. Meanwhile, subsidiary Korea Ginseng Corp (KGC) posted Q3 revenue of KRW 372.2 billion in its health functional food business, up 3.4% YoY, with operating profit rising 12.2% YoY to KRW 80.1 billion. At the Capital Markets Day held later that day, CEO Bang Kyung-man directly presented KT&G’s new mid- to long-term shareholder return policy, emphasizing that earnings generated from sustained core profit growth will be prioritized for capital returns. Accordingly, KT&G will raise its 2026 annual dividend per share (DPS) by KRW 2,000 from the prior year to KRW 8,000—a 33.3% increase—and lift its dividend payout ratio from the current 60% level to 75% or higher by 2030. In addition, KT&G will execute KRW 1.2 trillion in share repurchases and cancellations over the next four years starting in 2027. Combined with dividends, total shareholder returns are projected to reach KRW 5 trillion over the four-year period, with additional special returns under consideration should further measures be warranted to maximize shareholder value. CEO Bang also unveiled the company’s future business strategy alongside its shareholder return plan. KT&G forecasts group revenue of KRW 7 trillion and operating profit of KRW 1.5 trillion for this year. The company also plans to bring out the competitive edge of its overseas combustible cigarette, NGP, and health functional food businesses and actively expand its presence in overseas markets. Leveraging the brand equity of flagship products such as ESSE, KT&G will execute strategic pricing initiatives and raise the share of premium products in its sales. The company also plans to drive volume growth by entering untapped markets, including approximately 30 countries where it currently has no footprint. Furthermore, KT&G will scale up its local subsidiaries to strengthen control over pricing and product strategies. The company will also optimize its global production network, including its new plant in Indonesia, completed last October, to improve earnings quality by reducing cumulative costs by at least KRW 550 billion over the next four years. To accelerate international expansion in the heat-not-burn (HNB) segment, KT&G will complement its existing global partnerships with direct operations in local markets. Additionally, LOOP—the nicotine pouch brand under Swedish manufacturer ASF, which KT&G acquired late last year—aims to expand into approximately 70 countries by 2030, including the United States, the world’s largest nicotine pouch market. KGC, KT&G’s health functional food subsidiary, plans to increase its overseas sales share by expanding beyond sales of its existing Jung Kwan Jang products to supplying red ginseng ingredients. The company is also currently in discussions with global food and beverage and beauty companies regarding potential technology partnerships and product development. Based on these business strategies, KT&G has set the following targets for 2030: overseas sales accounting for more than 70% of its combustible cigarette business; NGP revenue accounting for more than 30% of its tobacco business; and overseas sales accounting for more than 30% of its health functional food business. CEO Bang stated, “By advancing and scaling our three core growth engines—overseas combustible cigarettes, NGP, and health functional foods—we will deliver profitability-driven growth rather than mere top-line expansion. Backed by sustained earnings growth, we remain committed to maximizing shareholder value through world-class capital returns .”