London, October 25, 2024, (Oilandgaspress) –––Kia Corporation today announced its 2024 third quarter business results and raised its annual consolidated financial guidance. The new targets are revenue of KRW 105-110 trillion, operating profit of KRW 12.8-13.2 trillion, and an operating profit margin of over 12 percent.
For the third quarter of 2024, the company’s quarterly revenue increased 3.8 percent to KRW 26.52 trillion, supported by a higher average selling price (ASP) for vehicles, driven by an enhanced sales proportion of recreational and electrified vehicles.
Operating profit and net profit, rose 0.6 percent and 2.1 percent respectively year over year to KRW 2.88 trillion and KRW 2.27 trillion. The company’s operating profit margin also stood at 10.9 percent, recording a two-digit margin for eight consecutive quarters since the fourth quarter of 2022.
Kia’s profitability growth was helped by stabilized raw material prices, favorable exchange rates and an improved product mix, which more than offset the impact from one-off pre-emptive provisions related to warranty extension in the quarter. Excluding these provisions, operating profit reached KRW 3.51 trillion, with an operating profit margin of 13.2 percent in the third quarter.
Kia sold 763,693 units in the third quarter of 2024, a 1.9 percent decrease year over year, due to the temporary suspension of production at certain Kia plants as part of upgrades to facilities. Separately, the temporary gap in sales of some models was a result of optimizations to vehicle lineups.
Sales increased in major regions such as North America, India, the Middle East and the Asia-Pacific region, strengthened by the appeal of the company’s key recreational vehicles (RVs), such as the Sportage and Telluride SUVs. However, a decrease in EV sales due to reduced subsidies, plus lack of supply of the company’s popular subcompact vehicles in Europe, contributed to an overall sales decrease outside of Korea of 0.8 percent.
Sales in Korea also decreased, despite a growth in sales of the company’s hybrid models. This was due to an overall decrease in demand across the automotive industry as well as the temporary suspension of production at the Kia AutoLand Hwaseong facility in Korea, which is upgrading its facilities in preparation for the introduction of the new Tasman pickup truck.
In the third quarter of 2024 Kia recorded global retail sales of 155,000 electrified vehicles, including hybrid (HEV), plug-in hybrid (PHEV) and all-electric vehicles, representing a 3.6 percent increase from a year earlier. This was led by strong demand for HEV models, such as the Sportage Hybrid and Carnival Hybrid as well as new models, such as the all-electric EV3 SUV.
In addition, sales of Kia’s electrified vehicles accounted for 21 percent of the company’s total sales in the third quarter, an increase of 1.5 percentage points. This increase was driven by strong demand for hybrid vehicles, with sales of 84,000 units, a 10 percent increase year over year. Plug-in hybrid sales stood at 17,000 units, a 26.7 percent decrease year over year. The company’s EV sales increased 8.3 percent to 54,000 units.
For the nine months through September this year, Kia’s 2024 business results include global sales of 2,319,390 units, down 1.5 percent year over year, and gross revenue of KRW 80.30 trillion, up 6.4 percent from a year earlier. Operating profit stood at KRW 9.95 trillion, an 8.8 percent increase year over year, and net profit of KRW 8.34 trillion, up 12.2 percent from a year earlier.
(Revenue / Operating Profit / Net Profit unit: Billion KRW)
| 2024 Q3 | 2023 Q3 | Y/y Change | ||
| Vehicle sales (Units) | 763,693 | 778,213 | △1.9% | |
| Korea | 125,191 | 134,251 | △6.7% | |
| Outside of Korea | 638,502 | 643,962 | △0.8% | |
| Revenue | 26,519.8 | 25,545.4 | 3.8% | |
| Operating profit | 2,881.3 | 2,865.1 | 0.6% | |
| Net profit | 2,267.9 | 2,221.0 | 2.1% | |
* Net Profit includes non-controlling interest
* Under K-IFRS
Notes:
A. The above results are tentative consolidated business results under “Korean International Financial Reporting Standards (K-IFRS)”
B. The above results are preliminary and unaudited. Figures are subject to change after official audit
C. The above sales volumes are based on wholesales unless otherwise specified
D. The electrified vehicle retail sales figure is rounded up to the nearest hundred
E. For further information, please refer to the company website – (link)
F. Presentation material is available for download on the Company IR website – (link)
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