(LEAD) KT&G Q2 net more than doubles on strong exports

KT&G Corp., South Korea's leading tobacco company, reported a significant surge in its second-quarter net profit, more than doubling from the previous year, according to a press release on August 6. The strong earnings were primarily attributed to a surge in overseas tobacco sales, which rose by 19 percent to 557.7 billion won in 2025, accounting for over 60 percent of total tobacco sales.

This growth was driven by increased sales volumes and higher average selling prices, despite ongoing geopolitical tensions in the Middle East.

The company's robust earnings were bolstered by its expansion of the overseas manufacturing network, which includes production facilities in South Korea, Russia, Turkey, Indonesia, and Kazakhstan. This strategic move aims to strengthen local sales and lessen the company's dependence on exports. Additionally, KT&G has set its sights on the next-generation product (NGP) business, which includes heat-not-burn (HNB) products and health functional food products.

The company recently acquired Swedish nicotine pouch maker Another Snus Factory, a move that will allow it to enter the NGP market later this year.

In response to its solid performance in both tobacco and NGP businesses, KT&G has raised its full-year earnings guidance. The company now anticipates operating profit to grow by 10-13 percent on sales growth of 5-7 percent for the year, a significant improvement from its previous forecasts of 6-8 percent operating profit growth and 3-5 percent sales growth.

For the first six months of the year, KT&G's net profit increased by 84 percent to 740.33 billion won, while operating profit rose by 22.6 percent to 778.99 billion won, with sales expanding by 12 percent to 3.4 trillion won.