"Kia Earns 1.13 Trillion KRW Monthly, Sets Record High Q2 Revenue and Operating Profit (Comprehensive)"

26.2442 trillion KRW and 3.403 trillion KRW respectively
Operating profit margin 13%... "Top level among completed car manufacturers"
Annual profit target revised upward
'Sales over 100 trillion KRW · Operating profit margin up to 12%'

Following Hyundai Motor Company, its 'sibling company' Kia recorded its highest-ever performance in the second quarter. Sales revenue has set a record high since the first quarter of last year, and operating profit has reached an all-time high since the fourth quarter of last year. The operating profit margin reached 13%, achieving the highest level among completed vehicle manufacturers. The company also raised its annual targets in response to the strong performance.

On the 27th, Kia held an investor relations (IR) conference call and announced that its second-quarter sales revenue reached KRW 26.2442 trillion, and operating profit was KRW 3.403 trillion. These figures represent increases of 20% and 52.3%, respectively, compared to the same period last year. Ordinary profit was KRW 3.6823 trillion, and net profit was KRW 2.8169 trillion.

Kia EV9
Photo by Kia

Kia analyzed that the increase in sales volume, continued rise in average selling price (ASP) per vehicle (KRW 34.6 million, up 10.3% year-on-year), and favorable exchange rate effects contributed to the sales growth. The proportion of high-profit RV (recreational vehicle) sales also reached a record high of 68%.

Despite increases in various costs such as raw material expenses, significant sales expansion, improved sales mix centered on high-margin RV models, and price increase effects contributed to the record-high operating profit. This is the first time operating profit has exceeded KRW 3 trillion.

Kia's cumulative sales revenue for the first half of this year was KRW 49.9349 trillion, operating profit KRW 6.277 trillion, and net profit KRW 4.9368 trillion.

Strong sales volume also impacted the performance. Kia's second-quarter sales volume was 807,772 units, a 10.1% increase compared to the previous year. Domestic sales were 150,816 units, and overseas sales were 656,956 units, increasing by 7.1% and 10.5%, respectively, year-on-year. The cumulative sales volume for the first half was 1,576,023 units.

Kia Sorento
[Photo by Kia]

The company plans to focus its capabilities to continue the second-quarter trend. It will strengthen sales expansion and a high-profit system through maximum production and timely supply, focusing on popular RV models with high demand. The EV9, which recorded over 1,300 units sold in its first month domestically and was recognized for its excellent product quality, will be launched in major overseas markets. Mass production of the EV9 for Europe and the United States will begin in the third quarter, with full-scale sales in each market starting in the fourth quarter.

While increasing the sales proportion of key sport utility vehicle (SUV) models in major overseas markets, the company will also focus on selling key new models by region. In India, sales will be expanded with an improved version of the best-selling model, Seltos. In China, dedicated electric vehicles EV6 and EV5 will be sequentially introduced to drive sales recovery and enhance brand power.

Meanwhile, as Kia has achieved results exceeding market expectations and initial targets up to the second quarter of this year, it has revised its annual profit and loss targets announced earlier this year. The annual guidance has been updated as follows: sales revenue from the previous KRW 97.6 trillion to over KRW 100 trillion; operating profit from KRW 9.3 trillion to KRW 11.5 trillion to 12 trillion; and operating profit margin from 9.5% to 11.5% to 12.0%.

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