KT&G's Q1 operating profit surges 27.7% as KGC boosts growth

May 8 (UPI) -- South Korea's leading tobacco maker, KT&G, said its first-quarter sales were $1.2 billion, up 14.3% from a year earlier, for an operating profit of $250 million, up 27.7%.

The company said that its overseas cigarette division and the health functional food business of affiliate KGC contributed most to the improved results during the first three months of this year.

Its revenue from tobacco exports increased 24.6% year-on-year to $382 million, thanks to strong sales growth in Europe, Asia-Pacific and other global markets, according to KT&G.

KGC, the world's largest red ginseng company, posted sales of $228 million during the January-March period, up 5.8%, while operating income soared 53.3% to $19 million.

To further expand its business, KGC established a dedicated facility earlier this month to tap into the global nutrition sector, such as business-to-business sales of red ginseng ingredients.

On the back of the solid performance, the former state monopoly, which was privatized in 2002, is scheduled to disclose new shareholder return measures, including increased dividends.

Last month, KT&G cancelled more than 10 million shares worth $1.26 billion, which were equivalent to 9.5% of the company's total outstanding shares.

"Despite uncertainties in the external business environment, stable sales growth continues across all regions," KT&G said in a statement. "Based on earnings growth, we will keep trying to enhance shareholder value through such steps as stronger dividends."

The share price of KT&G climbed 0.74% on the Seoul bourse Thursday and gained another 2.43% Friday.

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This story was originally published May 8, 2026 at 6:55 AM.