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[Alpha Biz=(Chicago) Reporter Kim Jisun] KT&G announced on the 3rd that its operating profit in the second quarter of this year was 242.9 billion won, down 25.9% from the same period last year.
Sales fell 5.7 percent to 1.336 trillion won and net profit fell 41.3 percent to 199 billion won.
In addition to rising costs, a combination of a drop in sales of cigarettes and cigarette-type e-cigarettes (NGP) and a worsening real estate performance have affected the company.
Sales in the tobacco business fell 5.7 percent to 888.1 billion won in the second quarter and operating profit fell 19.1 percent to 242.6 billion won.
Domestic cigarette sales fell 2 percent to 426.6 billion won. The market share in the first half of this year was 65.5%.
Overseas cigarette sales, including local corporate production, fell 1.3% to 265.5 billion won.
Sales in the NGP business fell 17.7 percent to 190 billion won. This is the aftermath of a decrease in related sales due to the spread of devices.
However, the total sales volume of NGP sticks increased by 43.5% to 3.63 billion, and overseas sales volume increased by 72.7% to 2.21 billion.
Sales in the health functional food business fell 2.2 percent to 260.8 billion won, with operating losses of 10.7 billion won.
Overseas dry season sales rose 31.4% to 66.9 billion won due to growth in the Chinese market, a key market.
The real estate business sector saw its sales drop 21.3 percent and 73.5 percent, respectively, to 113.7 billion won and 11 billion won in operating profit.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
