KT&G Delivers Strong Q2 Results Driven by Global Business Profit Growth & NGP Momentum, Raises Interim Dividend to KRW 2,000

• Tobacco business drives fourth consecutive quarter of double-digit operating profit growth
• Raises 2026 revenue and operating profit guidance; reinforces shareholder returns on the back of sustained earnings growth

SEOUL, South Korea, Aug. 6, 2026 /PRNewswire/ -- KT&G (KRX: 033780) announced during its earnings call on August 6 that the company achieved its highest-ever 1^st-half revenue, driven by strong global business performance and its profitability-focused growth strategy. Operating profit also continued to post double-digit YoY growth for the 4^th consecutive quarter, prompting the company to raise its full-year 2026 revenue and operating profit guidance.

To start, KT&G's Q2 consolidated revenue reached KRW 1.7016 trillion, while operating profit amounted to KRW 414.5 billion, representing respective YoY increases of 9.9% and 18.5%. Accordingly, KT&G raised its full-year revenue growth guidance from 3–5% to 5–7% and its operating profit growth guidance from 6–8% to 10–13%.

KT&G's core tobacco business led the group's overall performance. Tobacco business revenue increased 11.7% YoY to KRW 1.2185 trillion, while operating profit rose 18.8% YoY to KRW 382.5 billion.

In particular, the global cigarette business continued to observe fast quantitative and qualitative growth despite a volatile external environment, including the conflict involving Iran. Q2 global cigarette revenue increased 18.9% YoY to KRW 557.7 billion. Operating profit also rose 45.6% YoY, supported by higher sales volumes and strategic price increases. Meanwhile, the domestic cigarette business maintained its overwhelming market leadership with a 67.9% market share during the 1^st half.

The NGP (Next Generation Products) business further solidified its leadership position amid continued growth in domestic NGP consumption, recording a 48.2% market share. NGP revenue reached KRW 242.7 billion, representing approximately 23.8% YoY growth, driven by a higher premium stick mix following the successful launch of 'lil AIBLE 3.0' in February.

KT&G also plans to diversify its NGP portfolio by launching innovative new products incorporating advanced technologies in the 2^nd half of the year. Through these launches, the company aims to further strengthen its market leadership.

KGC's health functional foods business recorded modest revenue growth in the 2^nd quarter. Domestic revenue increased 7.8% YoY to KRW 174.2 billion, supported by promotional campaigns during Korea's Family Month, promotions linked to relief payments for those affected by high fuel prices, and brand campaigns for products including "Gidarim Chimhyang" and "Everytime." Overseas revenue totaled KRW 49.6 billion, a decrease of KRW 9.4 billion from the previous year due to distribution inventory adjustments in China. Operating profit increased 61.3% YoY to KRW 10.0 billion, driven by expanded revenue from high-profit channels.

KT&G also decided to increase its dividend. On August 6, the Board of Directors resolved to raise the interim dividend to KRW 2,000 per share, up KRW 600 from KRW 1,400 last year, further reinforcing the company's high-dividend policy. Based on continued earnings growth and enhanced capacity for shareholder returns, the company also plans to consider increasing its year-end dividend going forward.

Meanwhile, KT&G cancelled all of its treasury shares in April, achieving treasury share cancellation target set out in its 2024–2027 Corporate Value Enhancement Plan announced at the end of 2023 ahead of schedule. In addition, the company plans to announce a new mid-to-long-term shareholder return policy in the 4^th quarter, including measures to strengthen dividends. Its previously announced treasury share repurchase and cancellation program for the 2^nd half of the year will proceed as planned without change.

Sang-hak Lee, KT&G's CFO, stated, "Operating profit increased significantly in our global business, while strong growth momentum in the domestic NGP business drove simultaneous growth in both revenue and operating profit. Based on this earnings growth, we will continue to enhance shareholder value through consistent shareholder return policies including high-dividends as well as treasury share repurchases and cancellations."