Kia declares 2023 fourth quarter enterprise outcomes

• Kia posts 2023 This autumn international gross sales of 733,155 items, a 0.4% enhance Y/y

           … This autumn income elevated 5% to KRW 24.33 trillion

           … Working revenue of KRW 2.47 trillion; working revenue margin hits 10.1%

           … Gross sales of electrified fashions elevated 18% to 143,000 items

• Kia posts 2023 annual international gross sales of three.1 million items, a 6.4% enhance Y/y

          … 2023 annual income elevated 15.3% to KRW 99.81 trillion

          … Working revenue of KRW 11.61 trillion; working revenue margin hits 11.6%  

          … Kia information strongest annual enterprise outcomes throughout all metrics

• In 2024, Kia targets whole international gross sales of three.2 million items

          … Goals for annual income of KRW 101 trillion

          … Targets working revenue of KRW 12 trillion; working revenue margin of 11.9%

• Kia to proceed solidifying its international EV management with strengthened lineups, together with expanded gross sales of the EV9 and launch of the brand new EV3

Kia Company at the moment introduced its 2023 fourth quarter and annual enterprise outcomes.

For 2023, Kia recorded international gross sales of three,087,384 items, a 6.4 p.c enhance yr over yr. The corporate’s annual income additionally elevated 15.3 p.c to KRW 99.81 trillion. Working revenue climbed to KRW 11.61 trillion, up 60.5 p.c in contrast with 2022, with an working revenue margin of 11.6 p.c.

Kia achieved its strongest annual enterprise leads to 2023 throughout all enterprise indicators. This was as a result of firm’s highest ever international gross sales, an enriched product combine centered on high-margin and high-value-added fashions, maintained low gross sales incentives, and favorable change charges.

Kia’s This autumn enterprise outcomes

Within the fourth quarter of 2023, Kia reported international gross sales of 733,155 items, a 0.4 p.c enhance over its 2022 efficiency. Gross sales exterior of Korea stood at 594,412 items, a 1.7 p.c enhance yr over yr, with gross sales in Korea of 138,743 items, a 4.8 p.c lower.

The robust demand in main areas equivalent to North America and Europe led the corporate’s year-over-year gross sales enhance exterior of Korea. Gross sales in Korea declined barely in contrast with the identical interval final yr as a result of continued excessive rates of interest, the tip of particular person consumption tax cuts and diminished gross sales of sure sedan fashions.

The corporate posted fourth quarter income of KRW 24.33 trillion, a rise of 5 p.c in contrast with the identical interval a yr earlier. Kia’s fourth quarter income was supported by elevated gross sales in North America and Europe, in addition to an elevated car common gross sales worth (ASP), adopted by enhanced gross sales of high-value-added fashions, equivalent to EVs.

Regardless of decrease uncooked materials prices, the corporate’s quarterly working revenue decreased by six p.c to KRW 2.47 trillion. This was as a result of greater incentives stemming from intensified competitors, unfavorable This autumn change charges regarding the power of the received, which elevated within the fourth quarter of 2023, and larger prices.  

Kia achieved a quarterly working revenue of greater than KRW two trillion, with a double-digit working revenue margin for 5 consecutive quarters for the reason that fourth quarter of 2022.

Gross sales of electrified fashions

Within the fourth quarter of 2023, Kia recorded international retail gross sales of 143,000 electrified automobiles, together with hybrid, plug-in hybrid, and all-electric fashions, representing an 18.1 p.c enhance from a yr earlier. As well as, as a proportion of the corporate’s whole gross sales, Kia’s electrified fashions elevated by 2.9 proportion factors to a 19.9 p.c share within the fourth quarter.

Electrified fashions had been a significant driving pressure in Kia’s car gross sales in the course of the ultimate quarter of 2023. In Western European nations, gross sales of electrified fashions accounted for 42.5 p.c of quarterly car gross sales, with the proportion at 39.3 p.c and 14 p.c for Korea and the U.S. respectively.

In 2023, Kia offered a complete of 576,000 electrified automobiles, an 18.2 p.c yr over yr enhance. Kia’s electrified fashions accounted for 19.1 p.c of the corporate’s whole gross sales, a 2.3 proportion level enhance from a yr earlier.  

2024 outlook

Kia anticipates international market uncertainties will persist in 2024, equivalent to excessive rates of interest and inflation. Nevertheless, the corporate goals to additional bolster its initiatives and obtain sustainable progress via its structured, optimistic enterprise cycle and international EV management, which will probably be solidified by the model’s expanded mannequin lineup.

To attain its purpose, Kia will proceed its gross sales progress of extremely interesting fashions in main markets equivalent to North America and Europe, the place demand for high-value-added automobiles is powerful.

Regardless of considerations over slowdowns within the EV market, Kia plans to strengthen its international management and gross sales, with the continued market rollout of the all-electric Kia EV9 three-row SUV – not too long ago named the North American Utility Automobile of the 12 months™ – in main markets, in addition to enhancing the model’s lineup with the brand new EV3 and EV5.

Via such plans, Kia is aiming for international gross sales of three.2 million items in 2024, a 3.6 p.c enhance in contrast with 2023. Kia additionally goals to attain income of KRW 101.1 trillion, an working revenue of KRW 12 trillion, and an working revenue margin of 11.9 p.c this yr.

Kia additionally plans to boost shareholder worth and return income from excessive progress by setting the dividend per share at KRW 5,600, which will probably be confirmed in the course of the annual shareholders’ assembly.

As a part of the mid- to long-term share buyback program introduced in early 2023, the corporate will proceed to strengthen shareholder worth by increasing the cancellation ratio of repurchased inventory to 100% conditionally (initially 50%), along with buyback of as much as KRW 500 billion yearly.

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

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

Notes:
A. The above outcomes are tentative consolidated enterprise outcomes below “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 primarily based on wholesales except in any other case specified
D. The electrified car retail gross sales determine is rounded up of their lots of
E. For additional data, please discuss with the corporate web site – (hyperlink)
F. Presentation materials is offered for obtain on the Firm IR web site – (hyperlink)