KT&G (033780) Q1 2026 earnings summary

Executive summary

• Achieved record-high global cigarette revenue in Q1 2026, with volume up 15%, revenue up 24.6%, and operating profit up 56.1% year-over-year, with trends expected to continue throughout the year.

• Significant progress in global expansion, especially in tobacco and health-functional food segments, with all regions showing stable sales growth and a new shareholder return policy emphasizing stronger dividends.

• NGP (Next Generation Products) business grew domestically and internationally, with domestic stick market share reaching 47.4%.

• HFF (Health Functional Food) business revenue rose 5.8% and operating profit surged 53.3%, driven by promotions, structural transformation, and domestic demand.

• Completed full cancellation of treasury shares worth KRW 1.8 trillion, exceeding targets ahead of schedule.

Financial highlights

• Q1 consolidated revenue rose 14.3% year-over-year to KRW 1.7036 trillion.

• Operating profit increased 27.6% to KRW 364.5 billion.

• Net income grew 46.6% to KRW 378.2 billion, aided by currency-related non-operating profits.

• EPS increased 54.7% to KRW 3,666.

• EBITDA rose 25% to KRW 442.7 billion, with a margin of 26%.

Outlook and guidance

• Overseas CC business growth and triple growth in volume, revenue, and operating profit expected to continue throughout the year.

• New NGP products planned for launch every quarter in 2026 to reinforce market dominance.

• Mid-to-upper 20% ASP growth expected for global CC business from 2024 to 2027.

• New mid- to long-term shareholder return policy focusing on stronger dividends to be announced in H2 2026.

• Continued innovative product launches and direct business expansion in APAC and Eurasia are planned.