KT&G reaffirmed its commitment to shareholder returns on Thursday, highlighting its focus on expanding its global presence and enhancing corporate value.
Following its general shareholders meeting, the company confirmed a dividend of 6,000 won ($4) per share for the past year, an 11.1 percent increase from the year before. KT&G has consistently increased its dividend payments over the last five years, from 4,800 won in 2021 to 5,000 won in 2022, 5,200 won in 2023, and 5,400 won in 2024.
KT&G reported record earnings of 6.5 trillion won in sales last year, driven by its heated tobacco products, which generated 1.88 trillion won in overseas revenue. This marks the first time overseas revenue for these products has exceeded domestic figures. These results, coupled with shareholder-friendly initiatives such as share buybacks, cancellations, and dividend growth, have propelled the company’s market capitalization to over 20 trillion won for the first time.
KT&G was among the first companies to announce a plan for treasury share cancellation after the National Assembly’s third amendment to the Commercial Act last month. The amendment requires corporations to retire newly acquired treasury shares within one year and existing holdings within 18 months. KT&G’s board meeting approved the cancellation of nearly 11 million shares, valued at approximately 2 trillion won based on the day’s closing price, on the same day.
The company anticipates further growth this year, which will translate into increased returns for shareholders through higher payouts. The implementation of separate taxation on dividend income is also expected to positively influence the growth of KT&G’s value, given its consistent dividend payout ratio of over 50 percent.
“We will enhance the profitability of the overseas heated tobacco business and maintain profit-centered growth by implementing tailored pricing strategies in each country and fully utilizing local production systems,” stated KT&G CEO Bang Kyung-man.
Regarding next-generation tobacco products, the CEO pledged to strengthen its leading position in the domestic market and enhance overseas business capabilities. The company already dominates Korea’s heated cigarette market with flagship products like lil Hybrid and lil Able.
“Leveraging our exceptional research and development capabilities, we will launch innovative platforms early and maximize the synergy of global partnerships to secure a dominant lead in the non-smoking category,” he concluded.
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