Kia Pronounces 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 file KRW 3.64 tln;Working Revenue margin at 13.2%
• Quarterly working revenue and working revenue margin hit the file for 2 consecutive quarters
• Enhanced product combine and common promoting value, stabilized uncooked materials costs and favorable trade charges, result in income and profitability development
• International retail gross sales of electrified autos elevated by 8.3% to 162,000 models
• Kia to proceed versatile manufacturing combine to react to market calls for

Kia Company right this moment 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 12 months over 12 months. 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 12 months, with an working revenue margin of 13.2 %. The corporate additionally recorded a web revenue of KRW 2.96 trillion, together with non-controlling curiosity, a rise of 5 % 12 months over 12 months.

Quarterly gross sales decreased barely in contrast with the identical interval final 12 months because of the short-term suspension of manufacturing at sure Kia vegetation because of the upgrading of amenities for electrical car (EV) manufacturing. Nonetheless, the corporate’s profitability nonetheless grew attributable to stabilized uncooked materials costs, favorable trade charges, business 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 12 months earlier. Gross sales outdoors Korea stood at 657,033 models, a 0.01 % enhance 12 months over 12 months, with gross sales in Korea of 138,150 models, an 8.4 % lower 12 months over 12 months.

Amid sturdy demand in main areas similar to North America, strong gross sales of key leisure autos (RVs) led the corporate’s enhance in gross sales outdoors of Korea. The Latin American and Asia-Pacific areas additionally skilled gross sales development, with rising shopper demand met by elevated provide.

Gross sales in Europe decreased attributable to a decline in exports of subcompact autos attributable to 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 development 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 attributable to a decline in industrial demand, which dropped 9.5% following the excessive base impact from particular person consumption tax cuts final 12 months.

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 12 months earlier. Kia’s second quarter income was supported by the next common promoting value (ASP) for autos, pushed by an enhanced gross sales proportion of leisure and electrified autos, and robust gross sales within the North American area.

An enhanced product combine, business main low-level of incentives, stabilized uncooked materials costs, and favorable trade charges noticed Kia’s second quarter working revenue enhance 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 file within the first quarter of this 12 months.

Kia’s first-half 2024 enterprise outcomes embrace international gross sales of 1,555,697 models, down 1.3 % 12 months over 12 months, and gross income of KRW 53.78 trillion, up 7.7 % from a 12 months earlier. Working revenue stood at KRW 7.07 trillion, a 12.6 % enhance 12 months over 12 months, and web revenue was KRW 5.77 trillion, up 16.8 % from a 12 months earlier. Aside from international gross sales, the corporate achieved its strongest-ever half-year enterprise outcomes.

Gross sales of electrified autos

Within the second quarter of 2024, Kia recorded international retail gross sales of 162,000 electrified autos, together with hybrid, plug-in hybrid and all-electric autos representing an 8.3 % enhance from a 12 months earlier. Regardless of the international adjustment of the EV adoption part, Kia recorded elevated gross sales because of the continued sturdy 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 whole gross sales, Kia’s electrified autos elevated by 2.5 share factors to a 21.4 % share within the second quarter.

This enhance was pushed by sturdy demand for hybrid autos, with gross sales of 89,000 models, a 7.5 % enhance 12 months over 12 months. Plug-in hybrid gross sales stood at 20,000 models, a 15.3 % lower 12 months over 12 months. The corporate’s EV gross sales elevated 21.8 % to 54,000 models.

In Korea, gross sales of electrified autos 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 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 optimum stock ranges via 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 common hybrid autos and keep gross sales momentum via the profitable launch of the upcoming K8 PE mannequin within the second half of the 12 months.

Within the U.S., Kia plans to reinforce model worth via optimum incentive ranges to take care of residual worth. The model can even proceed to enhance gross sales quantity and profitability via 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 via the profitable launch of the EV3 and EV6 PE. The model additionally goals to extend gross sales via its EV and HEV fashions, and by boosting the provision of subcompact autos.

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

* Internet Revenue consists of non-controlling curiosity
* Beneath 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 alter 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 tons of
E. For additional info, please confer with the corporate web site – (hyperlink)
F. Presentation materials is accessible for obtain on the Firm IR web site – (hyperlink)