Kia Proclaims 2024 Annual and Fourth Quarter Enterprise Outcomes

• Kia posts 2024 This autumn world gross sales of 769,985 items, a 5% improve Y/y
  • This autumn income elevated 11.6% to KRW 27.15 trillion
  • Working revenue of KRW 2.72 trillion; working revenue margin hits 10%
  • World retail gross sales of electrified autos elevated 14.5% to 164,000 items
• Kia information highest annual world gross sales of three.1 million items in 2024
  • 2024 annual income elevated 7.7% to KRW 107.45 trillion
  • Working revenue of KRW 12.67 trillion; working revenue margin hits 11.8%
  • Highest annual income, world gross sales, working revenue, and working revenue margin
• In 2025, Kia targets world gross sales of three.22 million items
  • Goals for annual income of KRW 112.5 trillion
  • Working revenue of KRW 12.4 trillion; working revenue margin of 11%
  • Keep two-digit working revenue margin based mostly on enterprise competitiveness
• Kia to attain 2024 Whole Shareholder Return of 33.3%, together with annual dividends of KRW 6,500 and buyback shares of KRW 700 billion
• Kia additionally goals to develop its 2025 Whole Shareholder Return as much as 35%

Kia Company in the present day introduced its 2024 annual and fourth quarter enterprise outcomes, highlighting sturdy efficiency amid unsure world market situations.

Kia recorded its highest annual world gross sales of three,089,300 items in 2024, a 0.1 % improve yr over yr. The corporate’s annual income additionally elevated 7.7 % to KRW 107.45 trillion. Working revenue climbed to KRW 12.67 trillion, up 9.1 % in contrast with 2023, with an working revenue margin of 11.8 %.

In 2024, Kia not solely exceeded KRW 100 trillion of annual income for the primary time, but additionally achieved its highest annual world gross sales, working revenue, and working revenue margin. This was because of the firm’s highest ever world gross sales, an enriched product combine centered on high-margin and high-value-added fashions, and favorable trade charges.

This autumn enterprise outcomes

Within the fourth quarter of 2024, Kia reported world gross sales of 769,985 items, a 5 % improve over its 2023 efficiency. Gross sales exterior of Korea stood at 629,051 items, a 5.8 % improve yr over yr, with gross sales of 140,934 items in Korea, a 1.6 % improve.

Gross sales elevated in main areas comparable to North America, the Center East and Asia-Pacific, strengthened by the attraction of the corporate’s key leisure autos (RVs) and its diversified powertrain (PT) lineup. Gross sales rose 7.3 % in North America amid the introduction of the brand new Carnival MPV Hybrid in addition to the expanded gross sales of Kia’s Sportage and Telluride SUVs. Gross sales additionally elevated 43.3 % and 18.7 % respectively within the Center East and Asia-Pacific area.

The corporate posted fourth quarter income of KRW 27.15 trillion, a rise of 11.6 % in contrast with the identical interval a yr earlier. Kia’s fourth quarter income was supported by elevated gross sales in main areas comparable to North America in addition to an improved product combine and an elevated automobile common gross sales value (ASP).

Regardless of a slight improve in incentives and gross sales guarantee provisions final yr, Kia additionally achieved a quarterly working revenue of two.72 trillion, with a double-digit working revenue margin for 9 consecutive quarters because the fourth quarter of 2022. This was because of the firm’s sturdy gross sales, pushed by Kia’s product competitiveness and favorable trade charges.

Gross sales of electrified autos

Within the fourth quarter of 2024, Kia recorded world retail gross sales of 164,000 electrified autos, together with hybrid (HEV), plug-in hybrid (PHEV), and all-electric (EV) fashions, representing a 14.5 % improve from a yr earlier. As well as, as a share of the corporate’s complete gross sales, Kia’s electrified fashions elevated by 1.6 share factors to a 21.5 % share within the fourth quarter.

In 2024, Kia bought a complete of 638,000 electrified autos, a ten.9 % yr over yr improve. Kia’s electrified fashions accounted for 21.4 % of the corporate’s complete gross sales, a 2.3 share level improve from a yr earlier. This improve was pushed by sturdy demand for hybrid autos, with gross sales of 367,000 items, a 20 % improve yr over yr. The corporate’s EV gross sales additionally elevated 10.2 % to 201,000 items.

2025 Outlook

In 2025, Kia plans to proceed to react flexibly to the rising demand for electrified autos in North America and Europe by increasing the gross sales of its HEV and EV fashions whereas getting into new segments within the Korean and Indian markets.

This yr, Kia will launch its new Tasman pickup truck, PV5 PBV mannequin and the Syros SUV, a strategic automobile for the Indian market. The corporate may also set up a full lineup of EV fashions via the worldwide roll out the EV4 and EV5.

Regardless of world market uncertainties, the corporate nonetheless expects a two-digit working revenue margin in 2025 based mostly on its enhanced product lineup and enterprise competitiveness.

Kia is aiming for world gross sales of three.22 million items in 2025, a 4.1 % improve in contrast with 2024. Kia additionally goals to attain income of KRW 112.5 trillion, an working revenue of KRW 12.4 trillion, and an working revenue margin of 11 % this yr.

The corporate additionally plans to boost shareholder worth and implement an lively return technique based mostly on its sturdy enterprise efficiency. Kia goals to attain its 2024 Whole Shareholder Return (TSR, which incorporates dividends, buyback and cancellation of repurchased inventory) of 33.3 %, whereas aiming to develop as much as 35 % in 2025.

As a part of this dedication, Kia will probably be setting the dividend per share at KRW 6,500, which displays a rise of KRW 900 from the earlier yr’s dividend of KRW 5,600. Moreover, the corporate is planning to allocate KRW 700 billion for share buyback and cancellation, which is a rise of KRW 200 billion in comparison with final yr.

Kia may also cancel 100% of all treasury inventory with none situations hooked up. Moreover, in 2025, Kia will revise its share buyback program to a cut up format, buying shares every within the first and second halves of the yr. Beforehand, the corporate carried out a full buyback within the first quarter of 2024. To boost market stability and guarantee a constant inventory value, Kia plans to conduct a cut up buyback program over your complete yr.

Kia will share additional plans for future methods and monetary objectives throughout its CEO Investor Day deliberate for April this yr.

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

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 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 on the market for obtain on the Firm IR web site – (hyperlink)