Q1 2025 KT&G Corp Earnings Call Transcript
Key Points
- KT&G Corp (XKRX:033780) reported double-digit growth in both revenue and operating profit for Q1 2025, driven by the Global CC business reaching record-high revenue.
- Adjusted operating profit showed exponential growth of 45.1% after accounting for one-off costs, such as early retirement packages.
- The company launched a new system of co-CEOs for domestic and overseas businesses to enhance profitability and accelerate key channel expansion.
- KT&G Corp is diversifying its product portfolio by developing nicotine pouches and e-vapor products to secure future growth momentum.
- The Kazakhstan plant has been completed, aiming to secure supply stability and cost competitiveness in the CIS region, with commercial mass production already started.
- Net income decreased by 9.7% due to currency fluctuations, leading to a reduction in EPS by 4.7%.
- NGP revenue was down year-over-year to KRW159 billion due to device supply disruptions impacting both domestic and global markets.
- The Health Functional Food (HFF) business saw a 21% decline in operating profit due to higher SG&A costs, despite a slight revenue increase.
- Domestic CC market volume declined by 8% due to unfavorable weather and holidays, impacting revenue.
- There is high uncertainty and risk expected for 2025, with ongoing political uncertainties affecting potential tobacco tax increases.
We will now begin the conference call for KT&G 2025 first-quarter results (technical difficulty) (Operator Instructions) We will we now begin the KT&G (technical difficulty)
Ladies and gentlemen, I'm Kate Park, Head of Investor Relations at KT&G. Thank you for attending KT&G's 2025 first-quarter earnings report. Today's presentation will be translated in English in simultaneous interpretation in the Q&A session consecutive interpretation. Materials can be found via the live webcast screen or downloaded from the company website.
Please allow me to introduce the KT&G management team in attendance today. With us today, we have Mr. Sang-Hak Lee, Chief Finance and Operating Officer; Mr. [Chung-Gu Huh], Chief Strategy Officer; Mr. Min-Seok Kwang, Chief of Global Business; Mr. Young-Chang Yoon, Chief of Marketing; [Tae Wa-Hong], Chief of NGP; (technical difficulty) Real Estate business; Yong-Beom Kim, Head of Finance Office, Mr. [Shin-Kyu Han], Chief of
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