Kia Corporation announced its third-quarter 2024 business results today, revealing a notable increase in revenue and a raise in its annual consolidated financial guidance. The company has set new targets of KRW 105-110 trillion in revenue and an operating profit of KRW 12.8-13.2 trillion, aiming for an operating profit margin exceeding 12%.
For Q3 2024, Kia reported a revenue of KRW 26.52 trillion, a 3.8% increase from the previous year. This growth was attributed to a higher average selling price (ASP) for vehicles, bolstered by an increased sales proportion of recreational and electrified vehicles. Operating profit climbed to KRW 2.88 trillion, marking a 0.6% year-over-year rise, while net profit grew by 2.1% to KRW 2.27 trillion. Kia’s operating profit margin held steady at 10.9%, maintaining a two-digit margin for the eighth consecutive quarter since Q4 2022.
The company’s profitability was supported by stabilized raw material prices, favorable exchange rates, and an improved product mix, which offset the impact of one-off pre-emptive provisions related to warranty extensions. Excluding these provisions, operating profit reached KRW 3.51 trillion, with a margin of 13.2%.
Kia sold 763,693 units in Q3 2024, reflecting a 1.9% decrease year-over-year. This decline was primarily due to temporary production suspensions at certain plants for facility upgrades, alongside model optimizations. Despite this, sales in key regions such as North America, India, the Middle East, and the Asia-Pacific saw increases, driven by strong demand for popular recreational vehicles like the Sportage and Telluride SUVs.
In terms of electrified vehicles, Kia recorded global retail sales of 155,000 units in Q3 2024, a 3.6% increase from the prior year. This growth was led by strong demand for hybrid models, including the Sportage Hybrid and Carnival Hybrid, as well as the newly launched all-electric EV3 SUV. Electrified vehicle sales now account for 21% of Kia’s total sales, up 1.5 percentage points from a year earlier.
For the first nine months of 2024, Kia reported global sales of 2,319,390 units, a 1.5% decrease year-over-year, while gross revenue reached KRW 80.30 trillion, up 6.4% from the previous year. Operating profit stood at KRW 9.95 trillion, an 8.8% increase, and net profit rose by 12.2% to KRW 8.34 trillion.
In light of its robust business performance, Kia announced plans to cancel the remaining 50% of its KRW 500 billion treasury stock by year-end, enhancing shareholder value. Earlier this year, Kia had already canceled the first 50% of its treasury stock, totaling 2,185,786 shares.
Outlook
Kia anticipates ongoing global market uncertainties due to geopolitical risks and economic challenges. The company aims to bolster profitability by enhancing product competitiveness and brand strength while closely monitoring market dynamics, including rising competition and shifts in electric vehicle adoption.
To adapt to evolving demands, Kia plans to strengthen its flexible production system across various powertrain lineups, including ICE, EV, PHEV, and HEV models. The company is set to launch key vehicles in multiple markets, including the K8 Hybrid, Carnival Hybrid, and the new Sportage SUV, while addressing supply shortages of subcompact models like the Morning and Stonic in Europe.
In India, Kia will enhance its GT line trim to provide customers with improved options, and it plans to utilize its Chinese plant as an export hub to expand its presence in the Asia-Pacific, Middle East, and Latin America regions.
