Business · Companies · 1 hr ago
KT&G’s overseas cigarette sales outpace domestic sales
South Korean tobacco company KT&G reported record quarterly revenue and profit for the third quarter, with revenue up 4.3% and operating profit up 13.9% from a year earlier.
Overseas cigarette sales led the growth, rising 10.5% to 579 billion won, while operating profit from those sales climbed 21.9%.
Overseas cigarette revenue was higher than domestic revenue in the quarter, continuing a shift that began last year.
KT&G says overseas cigarette sales, revenue and operating profit have all risen for 10 consecutive quarters.
The company has raised prices on key brands and sold more premium products to improve earnings, alongside expanding production near overseas markets.
This year it opened a factory in Indonesia, completing a network spanning five countries: South Korea, Indonesia, Russia, Kazakhstan and Türkiye.
KT&G plans to make at least 70% of its products overseas to reduce fixed costs and strengthen profitability.
KT&G’s overseas cigarette sales have outpaced its domestic sales, with overseas annual cigarette revenue first exceeding domestic revenue last year.
In the third quarter, overseas cigarette revenue was 5.79 trillion won, compared with 4.297 trillion won domestically.
Overseas cigarette sales volume, revenue and operating profit have all risen for 10 consecutive quarters.
KT&G attributes growth and improved profitability to price and product changes, stronger local operations and expanded overseas production.
The company plans to raise the share of production outside South Korea to at least 70%.
- Who
- KT&G, a South Korean tobacco company.
- What
- Its overseas cigarette sales have outpaced domestic sales, and its overseas cigarette business has continued to grow.
- When
- Overseas annual cigarette revenue first exceeded domestic revenue last year. In the third quarter, overseas revenue was 5.79 trillion won.
- Where
- South Korea and overseas markets where KT&G operates.
- Why
- The article attributes growth to price increases, a greater share of premium products, local business capabilities and expanded overseas production.
This story does not have two clearly opposing sides.
KT&G’s annual overseas cigarette revenue exceeded its domestic cigarette revenue for the first time.
KT&G began operating a new factory in Indonesia, completing its five-country production network.
Overseas cigarette revenue reached 5.79 trillion won, above domestic revenue of 4.297 trillion won.
Donga Ilbo published the report on KT&G’s overseas cigarette business.
- Third-quarter overseas cigarette revenue
- 5.79 trillion won
- Third-quarter domestic cigarette revenue
- 4.297 trillion won
- Overseas cigarette sales growth
- Sales volume, revenue and operating profit rose for 10 consecutive quarters
- Production network
- South Korea, Indonesia, Russia, Kazakhstan and Türkiye
- Planned overseas production share
- At least 70%
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What people are saying
More than half of overseas cigarette revenue growth over the past five years has been driven by 14 overseas subsidiaries.
The ability to manage and operate businesses locally is the key driver of overall growth.