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• Year-End Dividend: KRW4,200, a 5% increase from last year.

• Annual Dividend Per Share (DPS): KRW5,400, highest in history, with a payout ratio of 52%.

• Share Cancellation: 3.3 million shares or 2.5% of total outstanding shares.

• Q4 Revenue Growth: 8% year-on-year to KRW1.5571 trillion.

• Q4 Operating Profit Growth: 5.3% year-on-year to KRW208.5 billion.

• Q4 Net Income Growth: 167.2% year-on-year to KRW301.7 billion.

• Annual Revenue: KRW5.9095 trillion, up 0.8% year-on-year.

• Annual Operating Profit: KRW1.1848 trillion, up 1.5% year-on-year.

• Annual Net Income: KRW1.1416 trillion, up 23.8% year-on-year.

• Annual EPS: KRW10,167, up 29.6% year-on-year.

• EBITDA Margin: 24.3% for the year.

• Global Cigarette Revenue Growth: 35.2% year-on-year to KRW379.5 million in Q4.

• NGP Revenue Growth: 11.1% year-on-year to KRW216.7 billion in Q4.

• Health-Functional Foods Annual Revenue Decline: 6.6% to KRW1.3016 trillion.

• Real Estate Annual Revenue Decline: 34% to KRW361.3 billion.

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Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• KT&G Corp (XKRX:033780) announced a 5% increase in the year-end dividend to KRW4,200, with an annual DPS reaching a historical high of KRW5,400.

• The company achieved record high revenues in its Global CC business, contributing to an 8% increase in Q4 revenue and a 5.3% rise in operating profits.

• KT&G Corp's capital efficiency improved, with the group's ROE increasing by 2.3 percentage points to 12.2%.

• The company executed a significant shareholder return policy, returning nearly 100% of net income to shareholders through a KRW1.1 trillion cash return.

• KT&G Corp plans to continue its share buyback and cancellation program, aiming to enhance shareholder value by canceling 3.3 million shares, or 2.5% of total outstanding shares.

Negative Points

• The domestic cigarette market in Korea saw a 3.9% decline in volume, impacting KT&G Corp's domestic CC revenue.

• The Health-Functional Foods (HFF) business experienced a 6.6% decline in annual revenue due to a subdued domestic market and weaker consumer sentiment.

• The real estate business faced a 34% decline in annual revenue, attributed to the completion of development projects and realignment of business directions.

• KT&G Corp anticipates continued internal and external uncertainties in 2025, including delayed economic recovery and weaker consumer purchasing power.

• The company incurred KRW20 billion in one-off costs related to ordinary pay allowances and wage increases, affecting Q4 tobacco operating profit.