The company (CEO Baek Bok-in) presented the company's preliminary performance for the second quarter of 2023 at the company presentation and announced the plan for shareholder return for this year, including a dividend and share repurchase and retirement. 

The company recorded 1.336 trillion KRW in sales and 242.9 billion KRW in operating profit in the second quarter combined with KT&G.

"The Next Generation Products (NGP) business division, which is the cigarette-type e-cigarettes, achieved 3.63 billion stick sales, marking a significant 43.5% growth compared to the same period last year. 

Particularly, overseas NGP stick sales reached 2.21 billion sticks, showing a strong 72.7% growth driven primarily by an increase in demand in the local market."

Total overseas cigarette sales, including production volumes from local subsidiaries, recorded 265.5 billion KRW. Export cigarette sales reached 152.9 billion KRW through price increase policies implemented across major markets such as the Middle East and Latin America. Domestic cigarette sales amounted to 426.6 billion KRW, and KT&G's domestic cigarette market share for the first half of this year reached 65.5%.

Health functional food division sales amounted to 260.8 billion KRW. Especially, overseas Health functional food sales reached 66.9 billion KRW, an increase of 31.4% over the same period last year, led by China's high growth rate. Global sales also experienced significant growth, expanding from 19.1% during the same period last year to 25.7%.

Meanwhile, in accordance with the medium- to long-term shareholder return policy announced in 2021, KT&G revealed plans to acquire approximately 300 billion KRW (3.47 million shares) worth of treasury stocks within the next three months and to immediately retire them. This share buyback is the first time to take place since 2009 and represents 2.5% of the total number of shares issued by KT&G.

Additionally, KT&G decided to pay an interim dividend for the first time since its founding. The interim dividend will be 1,200 KRW per share and is scheduled to be paid by August 23rd. The total annual dividend per share for the 2023 fiscal year is expected to be increased by at least 200 KRW from the previous year's 5,000 KRW.

A KT&G official stated, "During the second half of the year, we will strive to increase the competitiveness of our three key growth businesses: NGP, overseas cigarette, and health functional foods, thereby increasing corporate value." The official further revealed, "In order to continually enhance long-term shareholder value, we plan to announce a new shareholder return policy, including the treasury stock retirement policy, in the fourth quarter of this year."

(Photo description) KT&G Logo Image