Kt & G Corporation · KRX:033780
Kt & G — Q1 2025 Earnings Presentation
20 slides from Kt & G's earnings presentation, May 8, 2025
Slide 1: KT&G FY2025 First Quarter Results
KT&G FY2025 First Quarter Results 2025. 5. 8 | Investor Relations -1 -
Slide 2: Disclaimer
Disclaimer This presentation is prepared and provided for the convenience of investors and shareholders prior to the completion of the external audit. Therefore, certain contents are subject to change during the auditing process. The financial information in this presentation is based on K-IFRS stan
Slide 3: Key Takeaways
KEY TAKEAWAYS Robust results from Global CC with record-high quarter revenue drove double-digit growth in consolidated revenue and profit Volume growth in key regions and higher ASP via ‘aggressive pricing + improved product mix’ led to 23.3% volume growth, 53.9% revenue growth, 312.5% operating pro
Slide 4: Consolidated Results
Consolidated Results Revenue (KRW bn) Operating Profit (KRW bn) Net Income KRW 1.49 trn KRW 285.6 bn KRW 257.9 bn YoY +15.4% YoY +20.7% / (Adjusted OP) YoY +45.1% YoY -9.7% 1,491.1 EPS (Adjusted) KRW 2,370 1,292.3 343.2 285.6 YoY -4.7% 236.6 EBITDA / EBITDA Margin KRW 354.3 bn/23.8% YoY +19.1% YoY +
Slide 5: Movement in Earnings
Movement in Earnings Tobacco Business (unit : KRW bn) +37.8 Cost +56.8 FX Variance incl. COGS 57.6 343.2 HFF Real Estate Others Volume +67.2 Variance +7.8 285.6 Mix + -115.5 -4.8 -0.3 236.6 Pricing + KRW 49 bn (20.7%↑) Q1 ’24 Q1 ’25 One-off Q1 ’25 Operating Operating Cost Impact Adjusted Profit Prof
Slide 6: Tobacco Business Revenue and Operating Profit
Revenue (KRW bn) Operating Profit (KRW bn) Share of Global Sales (volume) ▪ Double-digit revenue growth (YoY +15.3%) driven by a ▪ Parallel growth of operating profit and margin ▪ Share of global sales beyond 60% (YoY +3.6%p) as strong global CC business (YoY +53.9%) breaking the (YoY +22.4%, +1.5%p
Slide 7: Domestic Combustible Cigarettes: Share of Market and Revenue
KT&G SoM1) 68.4% ▪ Continued SoM growth (YoY +2.4%p), and higher ASP (YoY +2.5%) led by stronger duty-free sales (YoY +14.0%) partially offsetting the revenue decline (YoY -2.4%) caused by steeper 66.7% decline in market volume (impacted by climate and holidays, YoY -8.2%) 66.0% 65.4% 66.0% 64.6% 64
Slide 8: Global Combustible Cigarettes Volume and Revenue
Volume (bn sticks) 16.31 15.31 15.67 14.31 12.71 5.72 5.51 6.54 5.84 Global Subsidiaries 4.86 ▪ Strong volume growth (YoY +23.3%) in key regions and higher ASP via ‘aggressive pricing + improved product mix’ drove highest-ever quarter revenues (YoY +53.9%) 9.80 10.60 8.47 9.13 Export 7.85 Revenue (K
Slide 9: Next-Generation Products Revenue and Stick Volume
▪ Limited growth in domestic revenue (YoY +6.5%) and sales restraint in global business due to temporary delay in device procurement caused by a supply disruption led to weaker revenue Revenue (KRW bn) Stick Volume (bn sticks) 14.49 13.93 176.3 159.0 Global 46.2 10.75 20.5 8.34 8.22 7.18 5.76 Global
Slide 10: NGP Domestic and Global Operations
Domestic Operation Global Operation (bn sticks) ▪ Higher demand in NGP further drove the market penetration of the category ▪ Delay in new demand for sticks due to impact from device supply disruption (YoY +1.8%p), while KT&G market leadership was maintained despite unfavorable and existing devices
Slide 11: Health Functional Food Results
Revenue (KRW bn) Operating Profit (KRW bn) Share of Global Sales (revenue) ▪ Revenue grew (YoY +1.9%) as the impact of a slow ▪ Reduced operating profits (YoY -20.9%) due to higher ▪ Increase in share of global sales (YoY +0.9%p) economy was more than offset by the Lunar New Year marketing expenses
Slide 12: Health Functional Food Revenue by Channel and Market
Domestic Revenue by Channel (KRW bn) Global Revenue by Market (KRW bn) ▪ Growth in new brands(Gidarim, GL-Pro, etc.) and increase in Lunar New Year holiday gift ▪ Higher revenue (YoY +8.8%) driven by stronger performance in China with demands led to higher sales from standalone stores Spring Festiva
Slide 13: Real Estate Results
Revenue (KRW bn) Operating Profit (KRW bn) ▪ Topline growth as more revenue is recognized from small-and-medium size ▪ Increased operating profit with higher profit recognition from small-and-medium development projects including Anyang, Mia and East-Daejeon size development projects as per progress
Slide 14: Q&A
Q&A NS KT&EG
Slide 15: Appendix. Income Status by Business Segment
Appendix. Income Status by Business Segment (units : KRW bn, sticks bn) Q1 ‘24 Q2 ‘24 Q3 ’24 Q4 ’24 Q1 ’25 Volume 25.43 29.32 30.24 27.64 27.83 NGP 3.54 3.68 3.59 3.68 3.42 Domestic 1.43 1.53 1.63 1.56 1.53 Global 2.11 2.15 1.96 2.12 1.89 CC 21.89 25.64 26.65 23.96 24.41 Domestic 9.18 10.33 10.33 9.
Slide 16: Appendix. KT&G Condensed Balance Sheet
Appendix. KT&G Condensed Balance Sheet ※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated Standalone (unit : KRW bn) Q1 ’25 YE’24 (unit : KRW bn) Q1 ’25 YE’24 Current assets(a) 7,135.5 7,176.3 Current assets(a) 3,994.7 4,166.9 Cash(*) 1,687.3
Slide 17: Appendix. KT&G Condensed Income Statement
Appendix. KT&G Condensed Income Statement ※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated 1) Standalone (unit : KRW bn) Q1 ’25 Q1 ’24 (unit : KRW bn) Q1 ‘25 Q1 ’24 Revenue 1,491.1 1,292.3 Revenue 917.2 791.8 Cost of goods sold 737.4 648.1
Slide 18: Appendix. KT&G Condensed Cash Flow
Appendix. KT&G Condensed Cash Flow ※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated Standalone (unit : KRW bn) Q1 ’25 Q1 ’24 (unit : KRW bn) Q1 ’25 Q1 ’24 Cash and cash equivalents at January 1 1,136.0 1,032.0 Cash and cash equivalents at J
Slide 19: Appendix. KGC Condensed Financial Statement (standalone)
Appendix. KGC Condensed Financial Statement (standalone) ※ The results below are still under audit by the outside auditors and may be subject to change. Balance Sheet Income Statement (unit : KRW bn) Q1 ‘25 YE ’24 (unit : KRW bn) Q1 ’25 Q1 ’24 Current assets 1,802.1 1,804.9 Revenue 292.7 265.3 Inven
Slide 20: Thank you
Thank you NS KT&EG