Kia Q3 Financial Report: Revenue Growth Despite Slight Drop in Global Sales

Kia Corporation has announced its financial results for the third quarter of 2024, reporting an increase in revenue but a slight decline in global vehicle sales. For the quarter, the company recorded global sales of 763,693 units, marking a 1.9% year-over-year decrease due to temporary production suspensions for facility upgrades and lineup adjustments. Despite these headwinds, Kia’s quarterly revenue grew by 3.8% to KRW 26.52 trillion, driven by higher average selling prices (ASP) and an increased proportion of recreational and electrified vehicles in its portfolio.

Revenue and Profit Margins Remain Strong

Operating profit for Q3 stood at KRW 2.88 trillion, achieving a 10.9% operating profit margin, a level the company has maintained for eight consecutive quarters. Kia’s profitability was further supported by stable raw material costs, favorable exchange rates, and a refined product mix, which more than offset one-off provisions related to warranty extensions. Adjusting for these provisions, operating profit would have reached KRW 3.51 trillion, with an operating margin of 13.2%.

Electrified Vehicle Sales on the Rise

The automaker also recorded a growth in electrified vehicle sales, a segment that has been gaining momentum across its global markets. During Q3, Kia sold 155,000 electrified vehicles, a 3.6% year-over-year increase. The segment accounted for 21% of Kia’s total sales, driven by demand for hybrid models like the Sportage Hybrid and Carnival Hybrid, along with the launch of the all-electric EV3 SUV. Hybrid vehicle sales rose by 10% to 84,000 units, while EV sales increased by 8.3% to 54,000 units.

Global Market Performance and Supply Challenges

In terms of market performance, Kia witnessed a sales boost in North America, India, the Middle East, and the Asia-Pacific region. However, overall sales outside Korea saw a slight decline of 0.8%, partly due to decreased EV sales caused by reduced subsidies in certain regions and supply constraints for subcompact models in Europe. In Korea, sales dipped due to lowered industry-wide demand and temporary production halts at the Kia AutoLand Hwaseong facility, which is currently preparing for the new Tasman pickup truck.

With robust results in the first three quarters of 2024, Kia has raised its full-year financial targets. The company now expects revenue between KRW 105-110 trillion, operating profit of KRW 12.8-13.2 trillion, and an operating profit margin exceeding 12%. Kia also confirmed plans to cancel the remaining 50% of its treasury stock by year-end to enhance shareholder value, following an earlier cancellation of KRW 500 billion in shares.

The post Kia Q3 Financial Report: Revenue Growth Despite Slight Drop in Global Sales first appeared on Motoroids.