[THE INVESTOR] Korean cigarette maker KT&G’s performance will continue to improve buoyed by overseas sales, local brokerages projected.
On June 21, NH Securities and Investment projected that KT&G’s second quarter sales will come in at over 1.12 trillion won (US$968.7 million), up 8.7 percent from the same period last year. For second quarter operating profits, NH Securities projected a figure of 340.4 billion won, up 12.3 percent over the same period.
Other securities firms also projected a positive outlook for
KT&G, citing growing sales in overseas markets.
Last year, KT&G sold 46.5 billion cigarettes in overseas markets. Of the total, 39.6 percent was sold in markets new to the company.
KT&G has also shown significant growth in the US market, which the company entered in 1999. Last year, the company sold 2.82 billion cigarettes, giving it the sixth largest share in the US market.
The company’s sales in African markets came in at 2.75 billion cigarettes. In comparison, KT&G had sold only about 40 million cigarettes in the region in 2010. Over the same period, KT&G’s sales in South American and Asia-Pacific markets saw a sevenfold and twofold increase, respectively.
By Choi He-suk (
cheesuk@heraldcorp.com)