Kia Pronounces 2024 Third Quarter Enterprise Outcomes

• Kia posts 2024 Q3 world gross sales of 763,693 items, 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%
• World retail gross sales of electrified automobiles elevated by 3.6% to 155,000 items, backed by Kia’s fashionable 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 steerage: 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 as we speak introduced its 2024 third quarter enterprise outcomes and raised its annual consolidated monetary steerage. 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 p.c.

For the third quarter of 2024, the corporate’s quarterly income elevated 3.8 p.c to KRW 26.52 trillion, supported by a better common promoting value (ASP) for automobiles, pushed by an enhanced gross sales proportion of leisure and electrified automobiles.

Working revenue and internet revenue, rose 0.6 p.c and a pair of.1 p.c 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 p.c, 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 p.c within the third quarter.

Kia offered 763,693 items within the third quarter of 2024, a 1.9 p.c lower yr over yr, because of the non permanent suspension of manufacturing at sure Kia crops as a part of upgrades to amenities. Individually, the non permanent hole in gross sales of some fashions was a results of optimizations to automobile lineups.

Gross sales elevated in main areas comparable to North America, India, the Center East and the Asia-Pacific area, strengthened by the attraction of the corporate’s key leisure automobiles (RVs), such because the Sportage and Telluride SUVs. Nonetheless, a lower in EV gross sales as a result of diminished subsidies, plus lack of provide of the corporate’s fashionable subcompact automobiles in Europe, contributed to an total gross sales lower outdoors of Korea of 0.8 p.c.

Gross sales in Korea additionally decreased, regardless of a development in gross sales of the corporate’s hybrid fashions. This was as a result of an total lower in demand throughout the automotive {industry} in addition to the non permanent 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 world retail gross sales of 155,000 electrified automobiles, together with hybrid (HEV), plug-in hybrid (PHEV) and all-electric automobiles, representing a 3.6 p.c enhance from a yr earlier. This was led by sturdy 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 automobiles accounted for 21 p.c of the corporate’s complete gross sales within the third quarter, a rise of 1.5 proportion factors. This enhance was pushed by sturdy demand for hybrid automobiles, with gross sales of 84,000 items, a ten p.c enhance yr over yr. Plug-in hybrid gross sales stood at 17,000 items, a 26.7 p.c lower yr over yr. The corporate’s EV gross sales elevated 8.3 p.c to 54,000 items.

For the 9 months by September this yr, Kia’s 2024 enterprise outcomes embody world gross sales of two,319,390 items, down 1.5 p.c yr over yr, and gross income of KRW 80.30 trillion, up 6.4 p.c from a yr earlier. Working revenue stood at KRW 9.95 trillion, an 8.8 p.c enhance yr over yr, and internet revenue of KRW 8.34 trillion, up 12.2 p.c from a yr earlier.

As the corporate’s collected enterprise outcomes from January to September exceeded targets, Kia additionally introduced that by the top of 2024 it is going to cancel the remaining 50 p.c 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 p.c of the treasury inventory, representing 2,185,786 particular person shares, was cancelled by Kia in Could.  

Outlook

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

Specifically, Kia will strengthen its versatile manufacturing system, based mostly on the corporate’s industry-leading expertise throughout numerous powertrain lineups, together with ICE, EV, PHEV, and HEVs. This can allow the corporate to react flexibly to altering electrified automobile 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 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 optimized manufacturing. The corporate may even start gross sales of its fashionable 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 fashionable 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 lowering demand throughout the worldwide automotive {industry}.

Within the US and Europe, Kia will start gross sales of key automobiles 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 short lived provide scarcity in Europe.

In India, the corporate will broaden gross sales of its GT line trim, providing an improved buyer selection and design. Kia may 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 / Internet Revenue unit: Billion KRW)

* Internet Revenue consists of non-controlling curiosity
* Underneath Okay-IFRS

Notes:
A. The above outcomes are tentative consolidated enterprise outcomes below “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 automobile retail gross sales determine is rounded as much as the closest hundred
E. For additional data, please seek advice from the corporate web site – (hyperlink)
F. Presentation materials is offered for obtain on the Firm IR web site – (hyperlink)