(ATTN: RECASTS throughout; ADDS photo)

SEOUL, Aug. 6 (Yonhap) -- KT&G Corp., South Korea's leading tobacco company, said Thursday its second-quarter net profit more than doubled from a year earlier, driven by robust overseas tobacco sales.

Net profit for the three months ended in June jumped to 362.1 billion won (US$254.3 million) from 143.5 billion won in the same period last year, the company said in a press release.

The company attributed the strong earnings to increased tobacco exports despite challenging external conditions, including prolonged geopolitical tensions in the Middle East.

Overseas tobacco sales rose 19 percent from a year earlier to 557.7 billion won in 2025, accounting for more than 60 percent of total tobacco sales, supported by higher sales volumes and improved average selling prices.

KT&G has expanded its overseas manufacturing network to strengthen local sales and reduce its reliance on exports.

The company currently operates tobacco production facilities in five countries -- South Korea, Russia, Turkey, Indonesia and Kazakhstan.

As part of its strategy to expand its next-generation product (NGP) business, KT&G plans to enter the nicotine pouch market later this year following last year's acquisition of Swedish nicotine pouch maker Another Snus Factory.

The NGP business includes heat-not-burn (HNB) products and health functional food products. HNB products heat tobacco without combustion, producing an aerosol rather than smoke.

Buoyed by solid performance in its tobacco and NGP businesses, KT&G raised its full-year earnings guidance.

The company now expects operating profit to grow 10-13 percent on sales growth of 5-7 percent this year, compared with its previous forecasts of 6-8 percent and 3-5 percent, respectively.

For the first six months of the year, net profit climbed 84 percent to 740.33 billion won from 401.44 billion won a year earlier.

Operating profit increased 22.6 percent to 778.99 billion won from 635.44 billion won over the same period, while sales rose 12 percent to 3.4 trillion won from 3.03 trillion won.

kyongae.choi@yna.co.kr

(END)

  • Galaxy Z series logs 1.44 mln preorders in S. Korea, highest on record
  • U.S. Marines stage live-fire drills involving FPV drones for 1st time in S. Korea
  • (2nd LD) U.S. military drone flies over inter-Korean border area, prompts civilian evacuation
  • Singer-actor Cha Eun-woo files appeal after paying 13 bln won in taxes

  • (2nd LD) Temperatures soar to record 42.5 C in southeast

  • (LEAD) Police raid Starbucks Korea over controversial promotional event

  • (3rd LD) Temperatures soar to record 42.5 C in southeast
  • U.S. Marines stage live-fire drills involving FPV drones for 1st time in S. Korea
  • (2nd LD) U.S. military drone flies over inter-Korean border area, prompts civilian evacuation

  • Full text of op-ed by new U.S. Ambassador to South Korea, Michelle Steel

  • (LEAD) Lee cites coup risk from Army elite, calls for swift integration of military academies

  • Heat-related death toll rises to 21 amid serious heat wave
  • U.S. Marines stage live-fire drills involving FPV drones for 1st time in S. Korea
  • (LEAD) S. Korea posts record-high current account surplus again in June on strong chip exports
  • (LEAD) Police raid Starbucks Korea over controversial promotional event