KT&G ends '20 at its best in top and bottom lines on global expansion

[Photo by Yonhap]

South Korea’s tobacco monopoly KT&G Corp. reported a 22 percent on-quarter fall in the fourth-quarter operating income, although ending 2020 at its best in both top and bottom lines on increased global outreach.

KT&G said in a regulatory filing on Thursday that its operating profit for full 2020 totaled a record 1.48 trillion won ($1.32 billion) on a consolidated basis, up 7.5 percent from a year ago. Sales were up 6.8 percent on year to also a historic high of 5.32 trillion won. Its net profit added 13.1 percent to 1.17 trillion won.

In the fourth quarter ended December 31, operating profit dropped 22.2 percent from the previous quarter but gained 35.2 percent against a year ago to 337.99 billion won. Sales fell 8.4 percent on quarter but rose 11.9 percent on year to 1.34 trillion won. Net profit however gained 10.7 percent to 307.71 billion won.

KT managed to add 23 overseas markets last year to total 103. At home, it sold 41.6 billion cigarette units, up 2.5 percent on year, to command 64 percent of the tobacco market. In vaping market, it ranked second after Philip Morris with a share of 34.3 percent by selling 3 million units.

The company last year signed a seven-year supply contract worth 2.2 trillion won with a Middle Eastern company and expanded outposts in the U.S. and others to boost overseas sales. It also began shipping e-cigarettes to Russia and Japan in partnership with Philip Morris International.

Shares of KT&G closed Thursday 0.3 percent up at 80,100 won.

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