Kia Declares 2024 Third Quarter Enterprise Outcomes

• Kia posts 2024 Q3 world gross sales of 763,693 models, 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 models, backed by Kia’s well-liked HEV fashions and new all-electric EV3 SUV
• Kia to additional strengthen its versatile manufacturing system based mostly on various 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 12 months, to boost shareholder worth

Kia Company immediately 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 the next common promoting worth (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 12 months over 12 months 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 for the reason that fourth quarter of 2022.

Kia’s profitability development was helped by stabilized uncooked materials costs, favorable alternate charges and an improved product combine, which greater than offset the affect 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 models within the third quarter of 2024, a 1.9 p.c lower 12 months over 12 months, because of the non permanent suspension of manufacturing at sure Kia vegetation as a part of upgrades to amenities. Individually, the non permanent hole in gross sales of some fashions was a results of optimizations to car lineups.

Gross sales elevated in main areas reminiscent of North America, India, the Center East and the Asia-Pacific area, strengthened by the enchantment of the corporate’s key leisure automobiles (RVs), such because the Sportage and Telluride SUVs. Nevertheless, a lower in EV gross sales attributable to decreased subsidies, plus lack of provide of the corporate’s well-liked 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 attributable to 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 improve from a 12 months earlier. This was led by robust 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 improve was pushed by robust demand for hybrid automobiles, with gross sales of 84,000 models, a ten p.c improve 12 months over 12 months. Plug-in hybrid gross sales stood at 17,000 models, a 26.7 p.c lower 12 months over 12 months. The corporate’s EV gross sales elevated 8.3 p.c to 54,000 models.

For the 9 months by means of September this 12 months, Kia’s 2024 enterprise outcomes embody world gross sales of two,319,390 models, down 1.5 p.c 12 months over 12 months, and gross income of KRW 80.30 trillion, up 6.4 p.c from a 12 months earlier. Working revenue stood at KRW 9.95 trillion, an 8.8 p.c improve 12 months over 12 months, and internet revenue of KRW 8.34 trillion, up 12.2 p.c from a 12 months earlier.

As the corporate’s accrued enterprise outcomes from January to September exceeded targets, Kia additionally introduced that by the top of 2024 it’s going to cancel the remaining 50 p.c of the KRW 500 billion treasury inventory it acquired within the first half of this 12 months, fulfilling the corporate’s dedication to boost 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 Might.  

Outlook

Kia anticipates world market uncertainties will persist, with ongoing geopolitical dangers and a sluggish economic system. Kia plans to proceed to boost its profitability based mostly on the corporate’s basically enhanced product competitiveness and model energy, whereas carefully monitoring the altering car market, together with parts reminiscent of 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 know-how throughout varied powertrain lineups, together with ICE, EV, PHEV, and HEVs. This may allow the corporate to react flexibly to altering electrified car market calls for. As well as, Kia will proceed to develop 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 means of enhanced stock operation by market to keep up a number one degree of profitability within the automotive {industry}.

Kia will construct gross sales momentum within the fourth quarter by means of optimized manufacturing. The corporate can even start gross sales of its well-liked fashions, together with the K8 Hybrid and Carnival Hybrid, whereas getting ready for the launch of the brand new Sportage SUV.

In Korea, the corporate will proceed to develop gross sales of its well-liked 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 develop gross sales of its GT line trim, providing an improved buyer selection and design. Kia can even proceed to make the most of its plant in China as an export technique hub to develop gross sales within the Asia-Pacific, Center East and Latin America areas.

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

* Internet Revenue contains non-controlling curiosity
* Below 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 based mostly on wholesales until in any other case specified
D. The electrified car retail gross sales determine is rounded as much as the closest hundred
E. For additional data, please check with the corporate web site – (hyperlink)
F. Presentation materials is out there for obtain on the Firm IR web site – (hyperlink)