1. What Happened? KT&G Q1 2025 Earnings Breakdown

KT&G reported revenue of KRW 15,479 billion, operating profit of KRW 3,499 billion, and net profit of KRW 1,433 billion for Q1 2025. While revenue and operating profit surpassed market expectations by 2% and 3% respectively, net profit fell short by a substantial 43%.

2. Why These Results? Analyzing the Positive & Negative Factors

  • Positive Factors:
    • Robust performance in the tobacco business
    • Growth in health functional foods and real estate
    • Strengthened shareholder return policy
  • Negative Factors:
    • Fluctuations in exchange rates and increased financial costs
    • Persistent high interest rate environment
    • Volatility in raw material prices and logistics costs
    • Potential economic slowdown and weakened consumer sentiment
    • Downgrade in credit rating

3. What’s Next? Investment Strategies

While monitoring short-term market reactions to the decline in net profit, investors should focus on the mid-to-long-term growth potential of core businesses. Closely monitor exchange rate and interest rate volatility, new business performance, and the continuity of the shareholder return policy.

4. Investor Action Plan

Investors should consider the following factors when making investment decisions:

  • Prepare for short-term stock price volatility
  • Confidence in mid-to-long-term growth potential
  • Alignment with personal investment style and goals

A balanced perspective is crucial for successful investing.