Q3 2024 KT&G Corp Earnings Call Transcript
Key Points
- KT&G Corp (XKRX:033780) reported record high revenue in its tobacco business, with a 7.7% increase in revenue and a 23.7% rise in operating profit.
- The global cigarette business achieved significant growth, with volume up 10.1%, revenue up 30.5%, and operating profit up 167.2%.
- The NGP business saw an 18.9% increase in operating profit, driven by a higher stick share in the revenue mix.
- The company achieved over KRW1 trillion in combined revenue from its three core businesses: global CC, NGP, and health-functional food.
- KT&G Corp's annual ROE is expected to improve to 11%, supported by strong performance in its main business areas.
- Despite growth in operating profit, KT&G Corp's net income decreased by 28% due to currency-related losses.
- The real estate business experienced a significant decline, with revenue falling by 56.2% and operating profit dropping by 83.4%.
- Domestic cigarette market volume declined by 5.6%, impacting overall revenue despite a rise in market share.
- The health-functional food segment saw a 1.7% decline in revenue due to a subdued domestic market and reduced promotions.
- The company's real estate business faced challenges due to the completion of large development projects, leading to unfavorable comparisons with the previous year.
Ladies and gentlemen, thank you for attending the call today. Now begin the conference call for KT&G's 2024 third-quarter earnings report. (Operator Instructions) We will now begin with KT&G's presentation.
Ladies and gentlemen, I am Kate Park, Head of Investor Relations at KT&G. Thank you for attending KT&G's 2024 third-quarter earnings report.
Today, we will begin with the third-quarter earnings report, and then we will move on to announce our corporate value-up plan. We will take questions after our announcements for the earnings and the value-up the plan.
Please allow me to introduce the KT&G management team in attendance today. With us today, we have Mr. Sang-Hak Lee, Chief Finance Officer; Mr. Chang-Gu Heo, Chief of Strategy and Planning; Mr. Sung-Sik Park, Chief of Real Estate Business; Mr. Min-Seok Kwon, Chief of Global Business; Mr. Wang-Seob Lim, Chief of NGP; Mr. Young-Chan Yoon, Chief of Marketing; Mr. Yong-Bum Kim, Head of Finance Office; and Mr. [Jong Jung
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