Kia Broadcasts 2024 Second Quarter Enterprise Outcomes

• Kia posts 2024 Q2 world gross sales of 795,183 items, 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 worth, stabilized uncooked materials costs and favorable alternate charges, result in income and profitability progress
• International retail gross sales of electrified autos elevated by 8.3% to 162,000 items
• Kia to proceed versatile manufacturing combine to react to market calls for

Kia Company immediately introduced its 2024 second quarter enterprise outcomes.

For the second quarter of 2024, Kia recorded world gross sales of 795,183 items, 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 internet 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 as a result of non permanent suspension of manufacturing at sure Kia crops as a result of upgrading of amenities for electrical automobile (EV) manufacturing. Nonetheless, the corporate’s profitability nonetheless grew because of stabilized uncooked materials costs, favorable alternate 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 world gross sales of 795,183 items, a 1.6 % lower from a 12 months earlier. Gross sales outdoors Korea stood at 657,033 items, a 0.01 % enhance 12 months over 12 months, with gross sales in Korea of 138,150 items, an 8.4 % lower 12 months over 12 months.

Amid robust demand in main areas equivalent 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 progress, with rising shopper demand met by elevated provide.

Gross sales in Europe decreased because of a decline in exports of subcompact autos brought on by the non permanent suspension of manufacturing at Kia AutoLand Gwangmyeong in South Korea, which is upgrading its amenities for electrical automobile (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 because of 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 worth (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, trade main low-level of incentives, stabilized uncooked materials costs, and favorable alternate 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 report within the first quarter of this 12 months.

Kia’s first-half 2024 enterprise outcomes embody world gross sales of 1,555,697 items, 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 internet revenue was KRW 5.77 trillion, up 16.8 % from a 12 months earlier. Other than world 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 world 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 world 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 autos elevated by 2.5 share factors to a 21.4 % share within the second quarter.

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

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

Future outlook

Kia anticipates world market uncertainties will persist in 2024, with ongoing geopolitical dangers, excessive rates of interest and inflation. The corporate can be intently monitoring the altering vehicle market, together with parts equivalent to intensifying competitors and the adjustment of the EV adoption stage. The corporate plans to take care of 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 increase gross sales in Korea with its well-liked hybrid autos and keep gross sales momentum by means of 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 by means of optimum incentive ranges to take care of 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 increase 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 provision of subcompact autos.

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

* Internet Revenue consists of non-controlling curiosity

* Below Ok-IFRS

Notes:
A. The above outcomes are tentative consolidated enterprise outcomes beneath “Korean Worldwide Monetary Reporting Requirements (Ok-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 until in any other case specified
D. The electrified automobile retail gross sales determine is rounded up of their lots of
E. For additional info, please check with the corporate web site – (hyperlink)
F. Presentation materials is offered for obtain on the Firm IR web site – (hyperlink)