– Cigarette business achieves record quarterly revenue and operating profit, with operating margin reaching 32.6%
– Annual dividend planned at KRW 8,000 per share for 2026; dividend payout ratio targeted at 75% or higher by 2030
– Shareholder return plan for 2027–2030 includes KRW 1.2 trillion in share repurchases and cancellations
SEOUL, South Korea, Nov. 5, 2026 /PRNewswire/ — KT&G (KRX: 033780) today announced third-quarter revenue and operating profit at its earnings presentation and unveiled a new shareholder return plan and business strategy at its Capital Markets Day.
Consolidated revenue increased 4.3% year over year to KRW 1.9052 trillion, while operating profit rose 13.9% to KRW 530.1 billion. Both figures marked all-time quarterly highs, driven by robust growth in the company’s core businesses and its profitability-focused strategy.
The cigarette business reported record quarterly revenue of KRW 1.3065 trillion, up 6.0% year over year and operating profit of KRW 425.5 billion, up 14.4%. Its operating margin reached 32.6%, an increase of 2.4 percentage points from the third quarter of last year.
In detail, the global cigarette business met its tenth consecutive quarter of simultaneous growth in sales volume, revenue and operating profit, breaking quarterly sales volume and revenue records. The Next Generation Products (NGP) business supported profitability-focused growth by maintaining its No. 1 market share in Korea and improving NGP stick price mix.
KGC, KT&G’s health functional foods subsidiary, reported revenue of KRW 372.2 billion, up 3.4% year over year, and operating profit of KRW 80.1 billion, up 12.2%.
During Capital Markets Day, KT&G President and CEO Bang Kyung-man presented the company’s new mid- to long-term shareholder return plan.
The KT&G CEO stated that KT&G would prioritize returning the value generated by sustained earnings growth in its core businesses to shareholders. Accordingly, the company plans to increase its annual dividend for 2026 to KRW 8,000 per share, an increase of KRW 2,000, or 33.3%, from the previous year. It also aims to raise its dividend payout ratio from approximately 60% currently to at least 75% by 2030.
KT&G also plans to repurchase and cancel KRW 1.2 trillion worth of shares over the next four years. Including dividends, the company plans a total shareholder return package of KRW 5 trillion. It will also consider additional special shareholder return schemes if it determines that further measures are warranted to enhance shareholder value.
The KT&G CEO also outlined KT&G’s business strategy. The company expects full-year 2026 group revenue of KRW 7 trillion and operating profit of KRW 1.5 trillion. It plans to accelerate its expansion in overseas markets by strengthening the competitiveness of its global cigarette, NGP and health functional foods businesses.
In the global cigarette business, KT&G plans to implement strategic price increases and expand the proportion of premium products in its sales mix, drawing on the strength of key brands such as ESSE. It also aims to increase sales volume by actively pursuing opportunities in markets with growth potential, including 30 countries it has yet to enter.
KT&G will expand operations through its local subsidiaries to strengthen control over pricing and product strategies. The company also aims to improve the quality of earnings through optimization of its global production network, which includes its new Indonesian factory completed in October 2026. Through these efforts, the company targets cumulative cost savings of more than KRW 550 billion over the next four years.
For its NGP business, KT&G plans to accelerate the global expansion of its heat-not-burn (HNB) products by establishing direct operations in local markets while continuing its existing global partnership. Meanwhile, the company plans to expand into approximately 70 countries by 2030, including the world’s largest nicotine pouch market, the U.S., with LOOP. LOOP is the brand of the Swedish nicotine pouch company ASF, acquired late last year by KT&G.
KGC plans to increase the global portion of its revenue by expanding its red ginseng ingredient business alongside sales of its existing JungKwanJang products. It is currently in discussions with global food and beverage and beauty companies to explore technology partnerships and potential product development opportunities.
Through these initiatives, KT&G has set the following targets for 2030:
– Global revenue to account for at least 70% of cigarette business revenue
– NGP revenue to account for at least 30% of cigarette business revenue
– Global revenue to account for at least 30% of health functional foods business revenue
“By strengthening our three growth pillars—global cigarettes, NGP and health functional foods—and expanding their global reach, we will deliver growth centered on profitability, going beyond simple revenue growth,” said the KT&G CEO. “Building on sustained earnings growth, we will enhance shareholder value through shareholder returns on par with the top-level schemes in the global market.”
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SOURCE KT&G
