Kia Declares 2024 Third Quarter Enterprise Outcomes

• Kia posts 2024 Q3 international gross sales of 763,693 models, a 1.9% lower Y/y
• Q3 income at KRW 26.52 trillion, up 3.8% Y/y
• Q3 working revenue at KRW 2.88 trillion; working revenue margin of 10.9%
• International retail gross sales of electrified autos elevated by 3.6% to 155,000 models, backed by Kia’s standard HEV fashions and new all-electric EV3 SUV
• Kia to additional strengthen its versatile manufacturing system based mostly on numerous powertrain competitiveness and proceed gross sales of high-value-added fashions
• Kia raised annual monetary steering: 2024 full-year income at KRW 105 – 110 trillion; working revenue at KRW 12.8 – 13.2 trillion; working revenue margin of over 12%
• Kia plans to cancel remaining 50% of treasury inventory by finish of 2024, which it acquired within the first half of this yr, to reinforce shareholder worth

Kia Company at the moment introduced its 2024 third quarter enterprise outcomes and raised its annual consolidated monetary steering. The brand new targets are income of KRW 105-110 trillion, working revenue of KRW 12.8-13.2 trillion, and an working revenue margin of over 12 %.

For the third quarter of 2024, the corporate’s quarterly income elevated 3.8 % to KRW 26.52 trillion, supported by the next common promoting worth (ASP) for autos, pushed by an enhanced gross sales proportion of leisure and electrified autos.

Working revenue and internet revenue, rose 0.6 % and a couple of.1 % respectively yr over yr to KRW 2.88 trillion and KRW 2.27 trillion. The corporate’s working revenue margin additionally stood at 10.9 %, recording a two-digit margin for eight consecutive quarters because the fourth quarter of 2022.

Kia’s profitability development was helped by stabilized uncooked materials costs, favorable trade charges and an improved product combine, which greater than offset the impression from one-off pre-emptive provisions associated to guarantee extension within the quarter. Excluding these provisions, working revenue reached KRW 3.51 trillion, with an working revenue margin of 13.2 % within the third quarter.

Kia bought 763,693 models within the third quarter of 2024, a 1.9 % lower yr over yr, because of the momentary suspension of manufacturing at sure Kia vegetation as a part of upgrades to amenities. Individually, the momentary hole in gross sales of some fashions was a results of optimizations to car lineups.

Gross sales elevated in main areas comparable to North America, India, the Center East and the Asia-Pacific area, strengthened by the enchantment of the corporate’s key leisure autos (RVs), such because the Sportage and Telluride SUVs. Nonetheless, a lower in EV gross sales because of decreased subsidies, plus lack of provide of the corporate’s standard subcompact autos in Europe, contributed to an total gross sales lower exterior of Korea of 0.8 %.

Gross sales in Korea additionally decreased, regardless of a development in gross sales of the corporate’s hybrid fashions. This was because of an total lower in demand throughout the automotive {industry} in addition to the momentary suspension of manufacturing on the Kia AutoLand Hwaseong facility in Korea, which is upgrading its amenities in preparation for the introduction of the brand new Tasman pickup truck.

Within the third quarter of 2024 Kia recorded international retail gross sales of 155,000 electrified autos, together with hybrid (HEV), plug-in hybrid (PHEV) and all-electric autos, representing a 3.6 % improve from a yr earlier. This was led by robust demand for HEV fashions, such because the Sportage Hybrid and Carnival Hybrid in addition to new fashions, such because the all-electric EV3 SUV.

As well as, gross sales of Kia’s electrified autos accounted for 21 % of the corporate’s complete gross sales within the third quarter, a rise of 1.5 proportion factors. This improve was pushed by robust demand for hybrid autos, with gross sales of 84,000 models, a ten % improve yr over yr. Plug-in hybrid gross sales stood at 17,000 models, a 26.7 % lower yr over yr. The corporate’s EV gross sales elevated 8.3 % to 54,000 models.

For the 9 months by way of September this yr, Kia’s 2024 enterprise outcomes embrace international gross sales of two,319,390 models, down 1.5 % yr over yr, and gross income of KRW 80.30 trillion, up 6.4 % from a yr earlier. Working revenue stood at KRW 9.95 trillion, an 8.8 % improve yr over yr, and internet revenue of KRW 8.34 trillion, up 12.2 % from a yr earlier.

As the corporate’s collected enterprise outcomes from January to September exceeded targets, Kia additionally introduced that by the tip of 2024 it should cancel the remaining 50 % of the KRW 500 billion treasury inventory it acquired within the first half of this yr, fulfilling the corporate’s dedication to reinforce shareholder worth. Previous to this, the primary 50 % of the treasury inventory, representing 2,185,786 particular person shares, was cancelled by Kia in Might.  

Outlook

Kia anticipates international market uncertainties will persist, with ongoing geopolitical dangers and a sluggish financial system. Kia plans to proceed to reinforce its profitability based mostly on the corporate’s basically enhanced product competitiveness and model energy, whereas intently monitoring the altering vehicle market, together with parts comparable to intensifying competitors and the adjustment of the EV adoption stage.

Particularly, Kia will strengthen its versatile manufacturing system, based mostly on the corporate’s industry-leading know-how throughout varied powertrain lineups, together with ICE, EV, PHEV, and HEVs. This can allow the corporate to react flexibly to altering electrified car market calls for. As well as, Kia will proceed to broaden gross sales centered on its key RV and HEV fashions, in addition to popularizing EVs with the model’s new EV3 all-electric compact SUV.

The corporate additionally plans to enhance the residual worth of its fashions by way of enhanced stock operation by market to take care of a number one stage of profitability within the automotive {industry}.

Kia will construct gross sales momentum within the fourth quarter by way of optimized manufacturing. The corporate will even start gross sales of its standard fashions, together with the K8 Hybrid and Carnival Hybrid, whereas making ready for the launch of the brand new Sportage SUV.

In Korea, the corporate will proceed to broaden gross sales of its standard RV fashions with hybrid lineups together with the Carnival MPV and Sorento SUV, in addition to its new EV3 all-electric SUV and K8 sedan to beat reducing demand throughout the worldwide automotive {industry}.

Within the US and Europe, Kia will start gross sales of key autos for every market, together with the corporate’s HEV and RV fashions, the brand new K4 compact sedan and EV3, whereas increasing provide of its subcompact fashions, such because the Morning and Stonic, which skilled a brief provide scarcity in Europe.

In India, the corporate will broaden gross sales of its GT line trim, providing an improved buyer alternative and design. Kia will even proceed to make the most of its plant in China as an export technique hub to broaden gross sales within the Asia-Pacific, Center East and Latin America areas.

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

* Web Revenue consists of non-controlling curiosity
* Below Okay-IFRS

Notes:
A. The above outcomes are tentative consolidated enterprise outcomes beneath “Korean Worldwide Monetary Reporting Requirements (Okay-IFRS)”
B. The above outcomes are preliminary and unaudited. Figures are topic to vary after official audit
C. The above gross sales volumes are based mostly on wholesales except in any other case specified
D. The electrified car retail gross sales determine is rounded as much as the closest hundred
E. For additional info, please seek advice from the corporate web site – (hyperlink)
F. Presentation materials is offered for obtain on the Firm IR web site – (hyperlink)