Kia Pronounces 2024 Annual and Fourth Quarter Enterprise Outcomes

• Kia posts 2024 This autumn world gross sales of 769,985 models, a 5% enhance 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 models
• Kia data highest annual world gross sales of three.1 million models 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 models
  • Goals for annual income of KRW 112.5 trillion
  • Working revenue of KRW 12.4 trillion; working revenue margin of 11%
  • Preserve two-digit working revenue margin primarily based on enterprise competitiveness
• Kia to realize 2024 Complete Shareholder Return of 33.3%, together with annual dividends of KRW 6,500 and buyback shares of KRW 700 billion
• Kia additionally goals to broaden its 2025 Complete Shareholder Return as much as 35%

Kia Company immediately 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 models in 2024, a 0.1 % enhance 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 in addition achieved its highest annual world gross sales, working revenue, and working revenue margin. This was as a result of 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 models, a 5 % enhance over its 2023 efficiency. Gross sales exterior of Korea stood at 629,051 models, a 5.8 % enhance yr over yr, with gross sales of 140,934 models in Korea, a 1.6 % enhance.

Gross sales elevated in main areas equivalent 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 equivalent to North America in addition to an improved product combine and an elevated automobile common gross sales worth (ASP).

Regardless of a slight enhance 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 as a result of 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 % enhance from a yr earlier. As well as, as a proportion of the corporate’s whole gross sales, Kia’s electrified fashions elevated by 1.6 proportion 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 enhance. Kia’s electrified fashions accounted for 21.4 % of the corporate’s whole gross sales, a 2.3 proportion level enhance from a yr earlier. This enhance was pushed by sturdy demand for hybrid autos, with gross sales of 367,000 models, a 20 % enhance yr over yr. The corporate’s EV gross sales additionally elevated 10.2 % to 201,000 models.

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 will even set up a full lineup of EV fashions by way of 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 primarily based on its enhanced product lineup and enterprise competitiveness.

Kia is aiming for world gross sales of three.22 million models in 2025, a 4.1 % enhance in contrast with 2024. Kia additionally goals to realize 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 primarily based on its sturdy enterprise efficiency. Kia goals to realize its 2024 Complete Shareholder Return (TSR, which incorporates dividends, buyback and cancellation of repurchased inventory) of 33.3 %, whereas aiming to broaden as much as 35 % in 2025.

As a part of this dedication, Kia will likely 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 will even cancel one hundred pc 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 reinforce market stability and guarantee a constant inventory worth, Kia plans to conduct a cut up buyback program over your complete yr.

Kia will share additional plans for future methods and monetary targets 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 alter after official audit
C. The above gross sales volumes are primarily based 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 info, please seek advice from the corporate web site – (hyperlink)
F. Presentation materials is obtainable for obtain on the Firm IR web site – (hyperlink)