Hyundai Motor Posts Record Quarterly Operating Profit of 1.41 Trillion KRW per Month (Comprehensive)

Operating Profit of 4.2379 Trillion KRW in Q2, Up 42.2% YoY
Record High Operating Profit for 3 Consecutive Quarters
Global Sales of 1,059,713 Units
Revised Upward Sales Growth Rate and Operating Profit Margin for This Year

Hyundai Motor Company recorded an operating profit of 4.2379 trillion KRW in the second quarter. This exceeded the market forecast of 3.8 trillion KRW and represents the highest quarterly operating profit ever. The company explained that the increase was influenced by higher sales volume, a mix improvement centered on high value-added models, and favorable exchange rate effects.

Hyundai Motor held a management performance conference call at its Seoul headquarters and announced on the 26th that it recorded sales of 42.2497 trillion KRW and an operating profit of 4.2379 trillion KRW in the second quarter of this year. Sales increased by 17.4% and operating profit by 42.2% compared to the same period last year. Ordinary profit was 4.8344 trillion KRW, and net profit was 3.3468 trillion KRW.

Hyundai Ioniq 5 N
[Photo by Hyundai]

Hyundai Motor cited the same reasons for the increase in sales as for the rise in operating profit (such as increased sales volume). Additionally, the cost of sales ratio decreased to 79%, down 0.4 percentage points from the same period last year. Selling and administrative expenses increased due to higher new car marketing costs and research expenses, but the ratio of selling and administrative expenses to sales decreased by 1.3 percentage points year-on-year to 11%.

Sales for the first half of the year totaled 80.0284 trillion KRW, with an operating profit of 7.8306 trillion KRW.

Sales volume also increased. In the second quarter, Hyundai Motor sold 1,059,713 units globally, an 8.5% increase compared to the same period last year. In the domestic market, 205,503 units were sold. This was the result of the full model change sales of the Grandeur and Kona starting from the end of last year, along with steady sales of SUVs and high value-added models. With smoother parts supply, production increased, leading to the full-scale sales of the Ioniq 6, and hybrid vehicle sales showed strong momentum, resulting in 854,210 units sold overseas. This is a 7.6% increase compared to the same period last year. The cumulative sales volume for the first half of the year was 2,081,540 units.

Chairman Chung Eui-sun of Hyundai Motor Group and President Jang Jae-hoon of Hyundai Motor are taking a commemorative photo next to the Ioniq 5N.
[Photo by Hyundai Motor]

Following the record-breaking first half performance, Hyundai Motor revised its annual performance forecast. In the January announcement of the ‘2023 Annual Performance Guidance,’ the company raised its consolidated sales growth rate and operating profit margin. Specifically, the sales growth rate was adjusted from the previous 10.5?11.5% to 14?15%, and the operating profit margin from 6.5?7.5% to 8?9%.

However, the company remains cautious about the second half performance. While expecting solid performance due to strong backlog demand and production expansion from improved operating rates, it expressed concerns over ongoing global uncertainties such as demand contraction caused by interest rate hikes. Increased marketing costs due to intensified competition among companies are also expected to burden management activities.

Santa Fe 5th Generation Model
[Photo by Hyundai Motor Company]

To overcome these challenges, Hyundai Motor plans to ▲ accelerate global sales of the Ioniq 6 ▲ expand electric vehicle sales through the launch of the Ioniq 5 N and Kona Electric ▲ maximize sales through production and sales optimization ▲ and launch a fully redesigned Santa Fe model.

Meanwhile, starting from the second quarter, Hyundai Motor will implement the newly announced quarterly dividend policy from April’s ‘Mid-to-Long-Term Shareholder Return Policy,’ setting the dividend at 1,500 KRW per common share.

This content was produced with the assistance of AI translation services.