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SEOUL, May 7 (Yonhap) -- KT&G Corp., South Korea's leading tobacco company, said Thursday its first quarter net profit rose sharply from a year earlier on strong cigarette sales overseas.
The company reported a net profit of 378.2 billion won (US$260.6 million) in the January-March period, up 46.6 percent on-year, according to its regulatory filing.
Operating income for the three month period came to 364.5 billion won, up 27.7 percent. Sales increased 14.3 percent to 1.7 trillion won.
KT&G said overseas tobacco sales led the quarterly performance, with sales outside of South Korea growing a sharp 24.6 percent on-year.
Domestically, sales grew 51.5 percent from the previous year, supported by robust performances of its next generation products, including heat-not-burn products, and a base effect caused by supply chain disruptions last year, the company added.
"We expect our overseas cigarettes business to continue its growth momentum, as we see a stable growth trend continue across regions, despite heightened uncertainties from tensions in the Middle East," the company said in a release.
This undated file photo shows KT&G Corp.'s headquarters in southern Seoul. (Yonhap)
Looking forward, the tobacco maker said it plans to actively pursue the global entry of its next-generation products, leveraging its competitive edge in the cigarette business.
The company is also seeking a global expansion of its nutrition business, notably its ginseng, potentially with overseas beverage and cosmetics makers.
KT&G, meanwhile, said it canceled 9.5 percent of shares issued, worth around 1.9 trillion won, last month, in line with a recently passed revision to the Commercial Act, aimed at improving corporate governance.
A new shareholder return policy, focusing on strengthening dividend payments, will be announced in the second half of the year, the company added.
fairydust@yna.co.kr
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