KT&G’s record-high earnings in Q3/2023 was driven by solid performance in combustibles and double-digit growth in heat-not-burn. Photo credit: Kwangmo, Creative Commons
KT&G Corporation reported record-high quarterly revenue of KRW1.69 trillion (US$1.28 billion) in Q3/2023, a 4% increase from same quarter last year. Operating profit rose 0.3% to KRW 406.7 billion (US$308 million), despite cost headwinds.
Solid performance in combustible business drove the revenue growth, as the company's total combustible revenue, including both overseas and domestic sales, jumped to KRW972.7 billion (US$736.80 million), a 3% increase year-on-year. Operating profit from combustible products recorded KRW269.4 billion (US$204.06 million), up 0.6%.
Overseas combustible business delivered impressive growth across all key metrics, including sales volume and revenue. KT&G's overseas combustible revenue increased 26.3% to KRW321.6 billion (US$243.60 million) and the sales volume recorded 14.82 billion sticks, up 21% YoY. The double-digit growth in revenue and sales volume of overseas combustible products was mainly driven by strategic pricing and combined growth across export and overseas subsidiary volumes.
The heat-not-burn business also recorded double-digit increase in both domestic and overseas sales figures. KT&G sold 1.45 billion sticks in the domestic market and 2.03 billion sticks in overseas markets, which represents 13.3% and 22.3% growth YoY, respectively.