Seoul – November 05, 2026 -- KT&G (KRX: 033780) reported record third-quarter operating profit of KRW 530.1 billion, up 13.9% year over year, and raised its planned 2026 dividend 33.3% to KRW 8,000 per share. The company announced the results alongside a new shareholder return plan and business strategy at its Capital Markets Day.
Consolidated revenue rose 4.3% to KRW 1.9052 trillion, also an all-time quarterly high. KT&G attributed the growth to its core businesses and a profitability-focused strategy.
Cigarette margin climbs 2.4 points to 32.6%
The cigarette business generated record quarterly revenue of KRW 1.3065 trillion, up 6.0%, and operating profit of KRW 425.5 billion, up 14.4%. The global cigarette unit recorded its tenth consecutive quarter of simultaneous growth in sales volume, revenue and operating profit. In Next Generation Products (NGP), KT&G kept its No. 1 market share in Korea and improved the NGP stick price mix.
Health functional foods subsidiary KGC reported revenue of KRW 372.2 billion, up 3.4%, and operating profit of KRW 80.1 billion, up 12.2%.
KT&G targets 75% payout ratio and KRW 1.2 trillion buyback by 2030
The 2026 dividend is KRW 2,000 above the previous year. KT&G aims to lift its dividend payout ratio from roughly 60% to at least 75% by 2030. It also plans to repurchase and cancel KRW 1.2 trillion of shares over the next four years. Including dividends, the total shareholder return package comes to KRW 5 trillion. The company will consider additional special return schemes if it judges them warranted.
For full-year 2026, KT&G expects group revenue of KRW 7 trillion and operating profit of KRW 1.5 trillion.
KT&G plans NGP entry in about 70 countries, including the U.S., by 2030
In global cigarettes, KT&G will implement strategic price increases and expand the share of premium products, drawing on brands such as ESSE. It also targets growth in 30 countries it has yet to enter. The company will expand through local subsidiaries to tighten control over pricing and product strategy. It also plans to optimize its global production network, which includes a new Indonesian factory completed in October 2026. KT&G targets cumulative cost savings of more than KRW 550 billion over four years.
In NGP, KT&G will build direct local operations for heat-not-burn products while keeping its existing global partnership. It plans to expand LOOP nicotine pouches into about 70 countries by 2030, including the U.S., the world's largest nicotine pouch market. LOOP is the brand of Swedish company ASF, which KT&G acquired late last year.
KGC plans to raise its global revenue share by expanding its red ginseng ingredient business alongside JungKwanJang product sales. It is in talks with global food and beverage and beauty companies on technology partnerships and potential product development.
KT&G sets three 2030 global revenue targets
The 2030 targets are:
- Global revenue at least 70% of cigarette business revenue
- NGP revenue at least 30% of cigarette business revenue
- Global revenue at least 30% of health functional foods revenue
CEO Bang Kyung-man said the company will deliver growth centered on profitability, "going beyond simple revenue growth."