KT&G (President Bang Kyung-man)
announced its 2024 fourth-quarter and annual financial results,
2025 business objectives, and shareholder return plans during a corporate
briefing on Thu, Feb. 6.
For 24Q4, KT&G posted
consolidated revenue of ₩1.5571 trillion and an operating profit of ₩208.5
billion, up 8.0% and 5.3% YoY, respectively. The annual revenue reached ₩5.9095
trillion, up 0.8% YoY, recording the highest in company history. Operating
profits reached ₩1.1848 trillion, up 1.5% YoY, achieving growth in both revenue
and profit for the first time in four years.
Since President Bang Kyung-man’s
new leadership starting last March, KT&G has focused on strengthening its
core business competitiveness and optimizing its financial structure, achieving
balanced growth. In its tobacco segment, KT&G recorded revenue of ₩3.9063
trillion and operating profit of ₩1.0815 trillion, up 8.1% and 10.7% YoY,
respectively. The strong performance was driven by increasing global sales and
effective pricing strategies.
Notably, global cigarette sales
volume increased 10.3% YoY, setting a new all-time high, while revenue
from global cigarette sales surged 28% to ₩1.4501 trillion, breaking previous
records. Profitability also improved significantly, with operating profit
soaring 84.2% over the same period.
The next-generation product (NGP) e-cigarette business
also maintained its growth trajectory, supported by increased domestic and
international sales. Last year’s domestic e-cigarette sales quantity reached
6.15 billion sticks, up 7.7% YoY, and global e-cig sales figures recorded 8.34
billion sticks, up 1.5% YoY.
Looking ahead to 2025, KT&G aims to strengthen its
competitive edge in the core tobacco business while enhancing efficiency
through a cost-effective manufacturing system and a profitability-driven
financial strategy. As such, the company listed at least a 5% growth in
consolidated revenue and a 6% increase in operating profits for this year’s
business management goals.
As part of its commitment to
shareholder value, KT&G has decided to immediately retire existing treasury
shares worth approximately ₩360 billion (2.5% of total issued shares).
Additionally, the company plans to repurchase and retire over ₩300 billion in
treasury shares in 2025, utilizing proceeds from non-core asset sales to retire
more than 4.5% of the total shares outstanding. Including planned dividend
payments of approximately ₩600 billion, KT&G aims to return more than ₩1.1
trillion in cash to shareholders.
On the same day, the board of
directors resolved to set the final dividend of 2024 to ₩4,200 and confirmed
Feb. 28 as the ex-dividend date. This brings the total annual dividend to
₩5,400 per share, up ₩200 YoY, including the previously paid semiannual
dividend of ₩1,200 per share. Last year, KT&G revised its articles of
incorporation in terms of modernizing its dividend procedures by changing the
ex-dividend date from year-end to the point resolved by the board, allowing
investors to establish their willingness to allocate their assets to the
company after checking their dividends. KT&G also aims to sustain its
upward dividend trend.
After President Bang took office,
KT&G released a value-up plan at the highest level based on both domestic
and international standards, promising cash returns of around ₩3.7 trillion
between 2024 and 2027 by packaging various assets, such as ₩2.4 trillion in
cash dividends and buying back treasury stocks worth ₩1.3 trillion, as well as
retiring at least 20% of its total number of issued stocks, including newly
purchased treasury stocks. In line with this commitment, the company initiated
cash returns amounting to roughly ₩1.1 trillion last year through ₩550 billion
in treasury share purchases and dividends of around ₩590 billion, achieving a
100% total shareholder return (TSR) rate. Regarding treasury shares, the
company retired 6.3% of total issued shares—3.7% from newly acquired shares
(approx. ₩550 billion) and 2.6% from previously held shares (approx. ₩310
billion). Furthermore, the company garnered a return on equity (ROE) of 12.2%,
up 2.3%p YoY thanks to enhanced profitability and improved capital efficiency.
An official from KT&G stated,
“2024 has been a year of meaningful growth in revenue and operating profits,
propelled by the growth in tobacco sales, our key business sector. Despite
growing uncertainties both in and out of the country in 2025, we will reinforce
the competitiveness in our original business areas based on global projects to
maintain the momentum of thriving performance and fulfill our value-up program,
which stands at the top level both from domestic and international standards,
to do our best in enhancing shareholders’ value.”
(Photo) KT&G CI
