Hyundai Motor Company held a business results conference call on Thursday (25th). The results for the first quarter of 2024 were: 1,067,767 units sold, IFRS consolidated; KRW 40.685 trillion in revenue (KRW 31.718 trillion from automotive, KRW 8.9405 trillion from finance and other); KRW 3.574 trillion in operating income; KRW 4.727 trillion in ordinary income; and KRW 3.376 trillion in net income (including non-controlling interests).
Sales growth continued to be robust in key regions such as North America and India, despite a year-on-year decline due to a temporary shutdown of production lines at the Asan plant in preparation for the launch of new vehicles. Operating profit was slightly lower than the same period last year due to lower sales volumes. Hyundai Motor sold 1,067,767 vehicles in the global market in the first quarter of 2024. This was a decrease of 1.51 TP3T compared to the same period last year. (* Based on wholesale sales)
Commenting on the results, a Hyundai Motor official said, "Despite the ongoing uncertainty in the business environment, including continued high interest rates and currency volatility due to geopolitical risks emanating from the Middle East, we have maintained stable profitability of over 8% due to continued sales growth driven by expanding demand in major overseas markets."
In the domestic market, we sold 159,967 units, down 16.31 TP3T year-on-year, but sales of hybrid models increased significantly. Overseas, we sold 846,800 units, up 1.91 TP3T year-on-year, thanks to the introduction of new models and improved productivity of key line-ups, as well as strong sales in major markets such as North America, Europe and India.
Global green vehicle sales (including commercial) decreased by 4.81 TP3T year-on-year to 153,519 units in the first three months of 2019, due to slower demand for electric vehicles (EVs), despite the sales boost from a stronger hybrid line-up. Of these, 45,649 were EVs and 97,734 were hybrids.
Revenue increased by TP3T7.61% year-on-year to TP40,685.5bn. Despite lower unit sales, revenue increased due to improved geographic mix, mainly in developed markets. The average exchange rate of KRW to USD was KRW 1,328, up 4.11 TP3T year-on-year.
The cost of sales ratio decreased by 0.11 TP3T points year-on-year to 79.31 TP3T. SG&A expenses increased due to the base effect of warranty expenses, and SG&A expenses as a percentage of revenue increased by 1.11 TP3T points year-on-year to 12.01 TP3T.
As a result, operating profit for 1Q2024 was TP3.57 trillion, down TP2.31 trillion year-on-year. Operating margin stood at 8.71 TP3T. Ordinary income and net income came to TP4.272 trillion and TP3.376 trillion, respectively.
Regarding the outlook for the future business environment, Hyundai Motor expects the expansion of sales-related costs due to intensifying competition among companies to be a risk factor for its future business activities. In addition, it expects the business environment to continue to be unpredictable due to the escalation of geopolitical risks and macroeconomic uncertainty in emerging economies. The global automotive market is expected to continue its strong growth in the eco-friendly vehicle market in the medium to long term as major countries strengthen environmental regulations, increase investment in eco-friendly infrastructure, and expand preference for eco-friendly vehicles.
In this regard, Hyundai plans to focus on ▲ enhancing eco-friendly vehicle sales by expanding the lineup of its dedicated electric vehicle brand IONIQ and adding new hybrid models ▲ maximising sales through production and sales optimisation ▲ expanding share and defending profitability by improving the mix of SUVs and high-value-added vehicles.
Finally, Hyundai Motor declared a dividend of KRW2,000 per share for the first quarter of 2024 to return to shareholders. This is a 33.31 TP3T increase from the previous quarter's dividend (KRW1,500). "Hyundai will continue to strive to enhance shareholder value by expanding its shareholder return policy in light of its corporate value-up programme," said a Hyundai spokesperson.
Article roadtesting editorial (kyuyongk98@gmail.com)
Photo Hyundai Motor Company
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