KT Reports Record Revenue and Strategic Expansion in Nicotine Products for 2025
- KT&G reports record quarterly revenue of KRW 1.8269 trillion, up 11.6% year-on-year, prompting upward growth forecast revision.
- The cigarette segment generates KRW 1.2323 trillion in revenue, with global sales surpassing KRW 500 billion for the first time.
- KT&G announces a joint acquisition of Another Snus Factory to expand its presence in the nicotine pouch market.
KT&G Reports Record Revenue and Strategic Expansion in Nicotine Products
KT&G, a leading player in the tobacco and health functional foods industry, announces a record high quarterly revenue of KRW 1.8269 trillion and an operating profit of KRW 465.3 billion for the third quarter of 2025. This achievement represents a year-on-year growth of 11.6% in revenue and 11.4% in operating profit. The impressive financial performance prompts the company to revise its annual growth expectations upward, now forecasting double-digit growth rather than the previously anticipated 5-7% in revenue and 6-8% in operating profit. The company's robust results underscore its resilience and adaptability in a competitive market.
Central to KT&G's success is its cigarette business, which alone generates KRW 1.2323 trillion in revenue, marking a significant 17.6% year-on-year increase. Operating profit from this segment rises 11% to KRW 371.8 billion. Notably, KT&G reports a milestone achievement with global cigarette revenue surpassing KRW 500 billion for the first time, reaching KRW 524.2 billion, driven by strategic price increases and notable volume growth in markets such as Central Asia, Latin America, and Asia-Pacific. This growth occurs despite intensifying competition within the domestic tobacco sector, where KT&G continues to maintain a leading market share.
In addition to its cigarette segment, KT&G's health functional foods division, KGC, records a revenue of KRW 359.8 billion, reflecting a 16.8% decline year-on-year. However, through effective cost optimization strategies, KGC manages to increase its operating profit by 3.9% to KRW 71.5 billion. Furthermore, KT&G's foray into the Next Generation Products (NGP) market sees growth in both device and stick sales due to new product launches, ensuring the company remains competitive across diverse product categories.
In a strategic move to bolster its presence in the nicotine pouch market, KT&G announces a joint acquisition of Another Snus Factory (ASF) in collaboration with Altria, with plans for finalization by December 2025. This acquisition aligns with KT&G's commitment to expanding its global footprint in the nicotine sector, as highlighted by CEO Kyung-man Bang during an Investor Day session. The collaboration aims to enhance KT&G's product offerings and market strategies leading into 2026.
As KT&G continues to innovate and adapt to market dynamics, its recent performance and strategic decisions underscore the company's ambition to lead in both traditional and emerging segments of the tobacco and health functional foods industries.