Kia publicizes 2024 First Quarter Enterprise Outcomes

• Kia posts 2024 Q1 world gross sales of 760,515 items, a 1% lower Y/y
• Q1 income of KRW 26.21 trillion, with working revenue of KRW 3.43 trillion; working revenue margin hits 13.1%
  …  Highest ever quarterly working revenue and working revenue margin
• Elevated product combine and common promoting worth, in addition to stabilized uncooked materials costs and favorable trade charges, result in income and profitability progress
• World retail gross sales of electrified fashions additionally elevated 18.1% to 157,355 items attributable to ongoing robust demand for HEV fashions
• Kia to proceed blended manufacturing to react flexibly to market calls for in addition to gross sales of widespread RV and EV fashions to spice up profitability

Kia Company in the present day introduced its 2024 first quarter enterprise outcomes.

For the primary quarter of 2024, Kia recorded world gross sales of 760,515 items, a one % lower 12 months over 12 months. The corporate’s quarterly income elevated 10.6 % to KRW 26.21 trillion. Working revenue climbed to KRW 3.43 trillion, up 19.2 % in contrast with the identical interval final 12 months, with an working revenue margin of 13.1 %. The corporate additionally recorded a web revenue of KRW 2.81 trillion, together with non-controlling curiosity, a rise of 32.5 %.

Quarterly gross sales barely decreased in comparison with the identical interval final 12 months, as a result of adjustment of the EV adoption part and non permanent provide scarcity of ICE and HEV fashions. The corporate’s profitability nonetheless expanded attributable to stabilized uncooked materials costs, favorable trade charges, and improved product combine centered on high-value-added fashions.

Kia’s Q1 enterprise outcomes

Within the first quarter of 2024, Kia reported world gross sales of 760,515 items, a one % lower from a 12 months earlier. Gross sales exterior Korea stood at 622,644 items, a 0.6 % lower 12 months over 12 months, with gross sales in Korea of 137,871 items, a 2.9 % lower.

Regardless of gross sales lowering in sure rising markets attributable to geopolitical dangers, the robust demand in main areas similar to North America, Europe, and China led the corporate’s year-over-year gross sales exterior of Korea. Gross sales in Korea declined barely in contrast with the identical interval final 12 months because the expiry of non permanent tax breaks on automobile purchases damped client demand in addition to the lowered gross sales of EV fashions.

The corporate posted first quarter income of KRW 26.21 trillion, a rise of 10.6 % in contrast with the identical interval a 12 months earlier. Kia’s first quarter income was supported by elevated automobile common promoting worth (ASP), enhanced gross sales of high-value-added RV and HEV fashions, and extra favorable trade charges.

The identical components, in addition to stabilized uncooked materials costs, noticed Kia’s first quarter working revenue enhance 19.2 % to KRW 3.43 trillion, the corporate’s highest quarterly working revenue ever. Consequently, Kia’s working revenue margin rose to 13.1 %, additionally the corporate’s highest quarterly working revenue margin since its final file of 13 % within the second quarter of 2023.

Gross sales of electrified fashions

Within the first quarter of 2023, Kia recorded world retail gross sales of 157,355 electrified automobiles, together with hybrid, plug-in hybrid, and all-electric fashions, representing an 18.1 % enhance from a 12 months earlier. As well as, as a proportion of the corporate’s complete gross sales, Kia’s electrified fashions elevated by 3.5 proportion factors to a 21.6 % share within the first quarter.

This enhance was pushed by robust demand for self-charging hybrid automobiles, which recorded gross sales of 93,424 items, a 30.7 % enhance, whereas plug-in hybrids noticed 20,021 items offered, a 5 % lower 12 months over 12 months. The corporate’s EV gross sales elevated 7.9 % to 43,910 items.

In Korea, gross sales of electrified fashions accounted for 41.2 % of quarterly automobile gross sales, with the proportion standing at 40.9 % and 15.8 % for Western Europe nations and the U.S. respectively.

Future outlook

Kia anticipates world market uncertainties will persist in 2024, with ongoing geopolitical dangers, excessive rates of interest and inflation. The corporate can also be intently monitoring the altering car market, together with components similar to intensifying competitors and the adjustment of the EV adoption stage. The corporate plans to take care of optimized stock ranges by way of versatile manufacturing operations based mostly on market calls for, whereas persevering with its enterprise operations centered on profitability and buyer worth.

Kia plans to proceed to develop gross sales in Korea with its hybrid fashions, together with the Sorento, Sportage SUV, and Carnival MPV, and proceed its gross sales momentum by way of the profitable launch of the all-electric new EV3 and EV6 PE mannequin within the second half of the 12 months.

Within the U.S., Kia plans to take care of optimum incentive ranges by way of demand-based manufacturing operations, whereas persevering with to enhance profitability by using new and high-value-added fashions such because the Carnival Hybrid MPV and K4 compact sedan.

In Europe, the corporate plans to give attention to rising gross sales centered on EVs in addition to increasing its EV lineup by way of the profitable launch of the EV3, strengthening its picture as a number one EV model.

By such plans, Kia is aiming for world gross sales of three.2 million items in 2024, a 3.6 % enhance over 2023. Kia additionally not too long ago offered a strategic roadmap to steer the worldwide electrification period by way of EVs, HEVs and PBVs on the firm’s 2024 CEO Investor Day.
 

(Income / Working Revenue / Web Revenue unit: Billion KRW)

* Web Revenue contains non-controlling curiosity

* Below Okay-IFRS

Notes:
A. The above outcomes are tentative consolidated enterprise outcomes underneath “Korean Worldwide Monetary Reporting Requirements (Okay-IFRS)”
B. The above outcomes are preliminary and unaudited. Figures are topic to alter after official audit
C. The above gross sales volumes are based mostly on wholesales until in any other case specified
D. The electrified automobile retail gross sales determine is rounded up of their a whole lot
E. For additional data, please discuss with the corporate web site – (hyperlink)
F. Presentation materials is obtainable for obtain on the Firm IR web site – (hyperlink)