KT&G Q2 Earnings Beat, Raises Guidance

Korea Tobacco & Ginseng Corporation announced its Q2 2026 results on August 6, reporting record first-half revenue and a fourth consecutive quarter of double-digit operating profit growth. Consolidated Q2 revenue rose 9.9% YoY to KRW 1.7016 trillion, and operating profit increased 18.5% to KRW 414.5 billion. The tobacco business led growth, with global cigarette revenue up 18.9% and operating profit up 45.6%, despite geopolitical volatility involving Iran. The NGP business grew 23.8% to KRW 242.7 billion, supported by the launch of 'lil AIBLE 3.0'. KGC's health functional foods business saw domestic revenue up 7.8% but overseas revenue down due to China inventory adjustments. Korea Tobacco & Ginseng Corporation raised its full-year revenue growth guidance to 5-7% and operating profit growth to 10-13%. The company also raised its interim dividend to KRW 2,000 per share, cancelled all treasury shares in April, and plans to announce a new shareholder return policy in Q4.