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Consumer Non-Durables

KT&G Corp.

Company Background

KT&G was founded as Korea Monopoly by the South Korean government in 1987. It was later privatized and listed on the South Korean stock market in 1999. It took its current name in 2002. The ginseng business was spun off to form a wholly owned subsidiary, Korea Ginseng.

Because KT&G produces tobacco and ginseng, one might expect the company name to stand for Korea Tobacco & Ginseng; however, it officially stands for Korea Tomorrow & Global.

KT&G no longer gets direct investment from the government; instead, government-affiliated small and midsize banks and national pension funds own stakes in it. It is known in South Korea as a company in which foreign investors have sizable interests.

The bulk of the company's earnings come from its tobacco business, which sells brands such as Esse, Bohem, This and Pine. The South Korean cigarette market has been contracting over the medium term as a smoking ban has been expanded both indoors and outdoors due to health concerns, and prices were raised sharply in 2015.

Sales abroad, on the other hand, are on the rise. The company is boosting exports and producing tobacco in Indonesia, Turkey, Russia and Iran.

KT&G also sells ginseng-based health food and beverages. Ginseng is commonly used as an ingredient for pharmaceuticals.

Business Summary

KT&G Corp. engages in the manufacture and sale of tobacco products. It operates through the Tabacoo and Real Estate Business Divisions. The Tobacco Division manufactures and distributes raw materials needed in production of tobacco. The Real Estates division offers rentals, sales, and housing development. The company was founded on April 1, 1987 and is headquartered in Daejeon, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue5,228.35B4,565.61M
Gross Profit2,881.05B2,515.85M
Operating income1,338.38B1,168.73M
Income before tax1,428.64B1,247.54M
Net income1,029.61B899.09M
EBITDA1,553.51B1,356.59M
Diluted EPS7,898.246.89
Dividends Per Share4,8004.19
Total Assets11,637.27B9,789.50M
Total liabilities2,410.09B2,027.41M
Total equity9,158.78B7,704.55M
Operating cash flow1,456.36B1,271.75M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 4,667.19B 4,471.51B 4,963.20B 5,055.31B 5,228.35B
Gross Profit 2,709.98B 2,588.98B 2,810.45B 2,928.23B 2,881.05B
Operating income 1,426.09B 1,255.10B 1,381.64B 1,473.18B 1,338.38B
Income before tax 1,345.62B 1,318.66B 1,460.99B 1,600.72B 1,428.64B
Net income 1,163.75B 901,650.43M 1,036.47B 1,166.46B 1,029.61B
EBITDA 1,587.14B 1,405.28B 1,564.44B 1,676.50B 1,553.51B
Diluted EPS 9,217 7,141 8,207.82 9,320.19 7,898.24
Dividends Per Share 4,000 4,000 4,400 4,800 4,800
Total Assets 9,981.36B 10,155.10B 10,712.09B 11,468.38B 11,637.27B
Total liabilities 2,151.60B 2,022.02B 2,006.16B 2,375.19B 2,410.09B
Total equity 7,772.05B 8,079.27B 8,650.56B 9,036.85B 9,158.78B
Operating cash flow 1,187.14B 857,058.47M 1,097.13B 1,304.35B 1,456.36B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 4,128.39M 4,063.10M 4,255.93M 4,284.56M 4,565.61M
Gross Profit 2,397.13M 2,352.51M 2,409.95M 2,481.79M 2,515.85M
Operating income 1,261.46M 1,140.46M 1,184.76M 1,248.57M 1,168.73M
Income before tax 1,190.27M 1,198.22M 1,252.79M 1,356.67M 1,247.54M
Net income 1,029.40M 819.29M 888.77M 988.61M 899.09M
EBITDA 1,403.91M 1,276.93M 1,341.50M 1,420.90M 1,356.59M
Diluted EPS 8.15 6.48 7.03 7.89 6.89
Dividends Per Share 3.53 3.63 3.77 4.06 4.19
Total Assets 9,323.58M 9,101.18M 9,262.91M 10,557.28M 9,789.50M
Total liabilities 2,009.80M 1,812.17M 1,734.76M 2,186.50M 2,027.41M
Total equity 7,259.86M 7,240.79M 7,480.27M 8,318.92M 7,704.55M
Operating cash flow 1,050.09M 778.77M 940.78M 1,105.49M 1,271.75M

Valuation Measures

Dec 2021
PER10.00
ROA8.91%
ROE11.31%
Operating margin25.59%
Profit margin19.69%

Key executives

  • President, Chief Executive Officer & Director: Bok-In Baek
  • Managing Director & Head-Finance: Gyeong-Bo Kang
  • Senior Managing Director, Head-R&D: Chi-Beom Oh
  • Vice President & Head-Sales: Hyeon-Jin Kim
  • Director & Vice President: Heung-Ryeol Kim

Shareholders

  • KT&G Corp. (12.6%)
  • National Pension Service of Korea (8.0%)
  • Industrial Bank of Korea (6.9%)
  • First Eagle Investment Management LLC (6.0%)
  • KT&G Corp. Employee Stock Ownership Association (2.7%)
  • Yacktman Asset Management LP (2.4%)
  • The Vanguard Group, Inc. (2.2%)
  • BlackRock Fund Advisors (2.0%)
  • Samsung Asset Management Co., Ltd. (0.8%)
  • Grantham, Mayo, Van Otterloo & Co. LLC (0.8%)

Contact Details

  • Website:http://www.ktng.com
  • Address: 71 Beotkkot-gil, Daedeok-gu, Daejeon, 34337, South Korea
  • Phone: +82.42.939.5000

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  • KT&G Social Welfare Foundation
  • JR REIT XVIII
  • KGC Life Engine Co. Ltd.
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  • KGCYebon Corp.
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  • Taea Industrial Co. Ltd.
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  • Korean Red Ginseng Corp., Inc.
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  • KT&G Corp. Employee Stock Ownership Association
  • Yungjin Pharm. Co., Ltd.

Competitors

  • Greencross WellBeing Corporation
  • Naturalendo Tech Co., Ltd.
  • EM-Tech. Co., Ltd.
  • NOVAREX Co., Ltd.
Last Updated on 4 Oct, 2022

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