Kia Broadcasts 2024 Second Quarter Enterprise Outcomes

• Kia posts 2024 Q2 international gross sales of 795,183 models, a 1.6% lower Y/y
• Q2 income at KRW 27.57 tln, up 5% Y/y
• Q2 Working Revenue rose 7.1% to a quarterly report KRW 3.64 tln;Working Revenue margin at 13.2%
• Quarterly working revenue and working revenue margin hit the report for 2 consecutive quarters
• Enhanced product combine and common promoting value, stabilized uncooked materials costs and favorable change charges, result in income and profitability progress
• World retail gross sales of electrified automobiles elevated by 8.3% to 162,000 models
• Kia to proceed versatile manufacturing combine to react to market calls for

Kia Company right now introduced its 2024 second quarter enterprise outcomes.

For the second quarter of 2024, Kia recorded international gross sales of 795,183 models, a 1.6 % lower yr over yr. The corporate’s quarterly income elevated 5 % to KRW 27.57 trillion. Working revenue climbed to KRW 3.64 trillion, up 7.1 % in contrast with the identical interval final yr, with an working revenue margin of 13.2 %. The corporate additionally recorded a internet revenue of KRW 2.96 trillion, together with non-controlling curiosity, a rise of 5 % yr over yr.

Quarterly gross sales decreased barely in contrast with the identical interval final yr as a result of short-term suspension of manufacturing at sure Kia crops as a result of upgrading of amenities for electrical car (EV) manufacturing. Nonetheless, the corporate’s profitability nonetheless grew resulting from stabilized uncooked materials costs, favorable change charges, trade main low-level of incentives, and an improved product combine centered on high-value-added fashions.

Kia’s Q2 and enterprise outcomes

Within the second quarter of 2024, Kia reported international gross sales of 795,183 models, a 1.6 % lower from a yr earlier. Gross sales exterior Korea stood at 657,033 models, a 0.01 % improve yr over yr, with gross sales in Korea of 138,150 models, an 8.4 % lower yr over yr.

Amid robust demand in main areas equivalent to North America, sturdy gross sales of key leisure automobiles (RVs) led the corporate’s improve in gross sales exterior of Korea. The Latin American and Asia-Pacific areas additionally skilled gross sales progress, with rising client demand met by elevated provide.

Gross sales in Europe decreased resulting from a decline in exports of subcompact automobiles brought on by the short-term suspension of manufacturing at Kia AutoLand Gwangmyeong in South Korea, which is upgrading its amenities for electrical car (EV) manufacturing.

Gross sales in Korea decreased, regardless of a progress in gross sales of the corporate’s key RVs and hybrid fashions, together with the Sportage and Sorento SUVs, and the Carnival MPV. This was resulting from a decline in industrial demand, which dropped 9.5% following the excessive base impact from particular person consumption tax cuts final yr.

Regardless of the gross sales lower, the corporate posted second quarter income of KRW 27.57 trillion, a rise of 5 % in contrast with the identical interval a yr earlier. Kia’s second quarter income was supported by the next common promoting value (ASP) for automobiles, pushed by an enhanced gross sales proportion of leisure and electrified automobiles, and powerful gross sales within the North American area.

An enhanced product combine, trade main low-level of incentives, stabilized uncooked materials costs, and favorable change charges noticed Kia’s second quarter working revenue improve by 7.1 % to KRW 3.64 trillion. The corporate’s working revenue margin additionally rose to 13.2 %. This marked the corporate’s highest quarterly working revenue and working revenue margin since its final report within the first quarter of this yr.

Kia’s first-half 2024 enterprise outcomes embrace international gross sales of 1,555,697 models, down 1.3 % yr over yr, and gross income of KRW 53.78 trillion, up 7.7 % from a yr earlier. Working revenue stood at KRW 7.07 trillion, a 12.6 % improve yr over yr, and internet revenue was KRW 5.77 trillion, up 16.8 % from a yr earlier. Other than international gross sales, the corporate achieved its strongest-ever half-year enterprise outcomes.

Gross sales of electrified automobiles

Within the second quarter of 2024, Kia recorded international retail gross sales of 162,000 electrified automobiles, together with hybrid, plug-in hybrid and all-electric automobiles representing an 8.3 % improve from a yr earlier. Regardless of the international adjustment of the EV adoption section, Kia recorded elevated gross sales as a result of continued robust demand for HEV fashions and the market rollout of its all-electric flagship, the EV9.

As well as, as a proportion of the corporate’s complete gross sales, Kia’s electrified automobiles elevated by 2.5 share factors to a 21.4 % share within the second quarter.

This improve was pushed by robust demand for hybrid automobiles, with gross sales of 89,000 models, a 7.5 % improve yr over yr. Plug-in hybrid gross sales stood at 20,000 models, a 15.3 % lower yr over yr. The corporate’s EV gross sales elevated 21.8 % to 54,000 models.

In Korea, gross sales of electrified automobiles accounted for round 40 % of quarterly car gross sales, with the proportion standing at 38.6 % and 17.9 % for Western Europe and the U.S. respectively.

Future outlook

Kia anticipates international market uncertainties will persist in 2024, with ongoing geopolitical dangers, excessive rates of interest and inflation. The corporate can be carefully monitoring the altering vehicle market, together with components equivalent to intensifying competitors and the adjustment of the EV adoption stage. The corporate plans to keep up optimum stock ranges by means 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 guide in electrification with the introduction of the brand new all-electric EV3 and the improved EV6 PE fashions. Moreover, Kia will broaden gross sales in Korea with its well-liked hybrid automobiles and preserve gross sales momentum by means of the profitable launch of the upcoming K8 PE mannequin within the second half of the yr.

Within the U.S., Kia plans to boost model worth by means of optimum incentive ranges to keep up residual worth. The model may also proceed to enhance gross sales quantity and profitability by means of new fashions such because the Sorento Hybrid SUV PE, the Carnival Hybrid MPV and the K4 compact sedan.

In Europe, the corporate plans to broaden its EV lineup by means of the profitable launch of the EV3 and EV6 PE. The model additionally goals to extend gross sales by means of its EV and HEV fashions, and by boosting the availability of subcompact automobiles.

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

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

Notes:
A. The above outcomes are tentative consolidated enterprise outcomes underneath “Korean Worldwide Monetary Reporting Requirements (Ok-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 up of their a whole lot
E. For additional info, please seek advice from the corporate web site – (hyperlink)
F. Presentation materials is obtainable for obtain on the Firm IR web site – (hyperlink)