KT&G, led by CEO Baek Bok-in, has surpassed 5 trillion won ($4.5 billion) in consolidated sales for the first time since its foundation.
KT&G said in a corporate briefing on Feb. 4 that its sales and operating profit recorded 5.3016 trillion won and 1.482 trillion won, respectively, as of last year's consolidation, breaking its record high performance.
Its performance was driven by the global sector. KT&G announced a large-scale export contract worth 2.2 trillion won for seven years with a Middle East tobacco importer early last year.
Based on this, exports in the main market recovered and overseas sales increased due to the expansion of the distribution network of overseas corporations.
Exports of e-cigarettes to such countries as Russia and Japan through PMI also contributed to global sales growth last year.
In particular, KT&G pioneered 23 new countries in the face of difficulties in spreading the COVID-19 last year, bringing the total number of entry countries to 103.
Among the new entrants, five countries, including Cameroon, Israel, and Guatemala, have secured more than 100 million cigarettes in annual sales by intensively fostering markets with high growth potential.
The domestic tobacco sector posted a year-on-year increase in sales despite a contraction in the duty-free market caused by COVID-19. KT&G's annual sales increased by 2.5% with 41.6 billion cigarettes compared to last year. Its market share stood at 64.0 percent, maintaining its No. 1 position in South Korea's cigarette market.
Its e-cigarette business also continued to grow. The cumulative sales of domestic 'lil' devices surpassed 3 million units, and the share of sticks exclusively for e-cigarettes recorded 34.3%.
KT&G defended its markets by continuously releasing differentiated products such as 'lil solid 2.0' and 'lil hybrid 2.0' last year.
The real estate sector also recorded 654.6 billion won in sales last year thanks to the Suwon development project, which grew about 56 percent year-on-year.
Meanwhile, KT&G announced its plan to increase the dividend per share from 4,400 won last year to 4,800 won in order to return to shareholders. Compared to the previous year, the increase rate is 9.1 percent.
"Despite the growing uncertainty caused by COVID-19, KT&G's sales and profits have all reached their highest levels due to the continued growth of overseas cigarette and real estate businesses and successful defense of the domestic market," said Baek Bok-in, CEO of KT&G.
“KT&G will strengthen its status as a global company by enhancing its business competitiveness,” he added.
