KT&G plans 5 trillion won in shareholder returns through 2030

KT&G plans 5 trillion won in shareholder returns from next year through 2030, using dividends and share buybacks.

That total is 25% higher than the amount it plans to return from 2023 to 2026.

The company plans to raise this year's dividend to 8,000 won per share and aims for dividends to reach at least 75% of earnings by 2030.

It also plans to buy back and cancel 1.2 trillion won of its shares over the period.

Third-quarter sales and operating profit beat market expectations, rising 4.3% and 13.9% from a year earlier to 1.9052 trillion won and 530.1 billion won.

Overseas cigarette sales, especially in the Middle East and Africa, drove growth, while net profit fell because of foreign-currency losses linked to a lower won-dollar exchange rate.

KT&G aims to grow overseas and newer tobacco sales, targeting overseas markets for at least 70% of cigarette sales and next-generation products for at least 30% of tobacco sales by 2030; NH Investment & Securities raised its price target to 240,000 won from 230,000 won.