KT&G net 4.3 percent down in Q2 on stronger won

KT&G Corp., South Korea's largest tobacco manufacturer, said Thursday its second-quarter net profit decreased 4.3 percent from a year earlier due to stronger local currency.

Net income stood at 184.3 billion won ($179.2 million) in the April-June period, compared with 192.7 billion won a year earlier, the company said in a regulatory filing.

Sales, however, rose 8.5 percent to 992.3 billion won in the cited period, and operating profit surged 15.1 percent to 286.3 billion won.

The numbers reflect performance results by KT&G and its subsidiaries, including Korea Ginseng Corp.

The company said the net profit slipped mostly due to the stronger won that cut its earnings from overseas sales. "Sales rose as KT&G released new products to catch up with the latest trend in the market, but the stronger won added direct material costs," KT&G marketing director Park Jung-hoon said in a press briefing.

KT&G's domestic market share edged up 0.6 percentage point to 62 percent on-year, with increased sales in higher-end products.

The company's shipments to emerging markets, including in the Middle East and Russia, rose 33 percent in the cited period from a year ago.

Sales of Korea Ginseng Corp. rose 3.8 percent to 187.8 billion won in the second quarter from a year ago, boosted by strong sales of ginseng products in the local market. (Yonhap)