Hyundai Glovis Reports 13% Decrease in Operating Profit Last Year, 10% Increase in Dividends

Hyundai Glovis increased its year-end dividend by 10% compared to the previous year despite a decrease in operating profit last year. This is part of the shareholder-friendly policy announced last year.

On the 25th, Hyundai Glovis announced that it recorded sales of KRW 25.6832 trillion and an operating profit of KRW 1.554 trillion last year. These figures represent decreases of 4.8% and 13.6%, respectively, compared to the previous year. Hyundai Glovis explained the poor performance as "a result of unfavorable exchange rates and intensified shortage of automobile vessels amid external factors such as interest rate hikes in major countries, slowdown in the global automobile market growth, and geopolitical risks."

Looking at the performance by business segment, the logistics sector recorded sales of KRW 9.0216 trillion and an operating profit of KRW 745.4 billion. Domestic and overseas inland transportation sales for finished vehicles increased, but forwarding sales such as container and air transportation decreased due to normalization of freight market conditions, resulting in a slight decline in sales compared to the previous year.

The shipping business recorded sales of KRW 4.2113 trillion and an operating profit of KRW 291.6 billion, down 8% and 31% respectively from the previous year. This was due to the continued shortage of available automobile vessel capacity and poor profitability caused by exchange rate declines.

The distribution sector posted sales of KRW 12.4503 trillion and an operating profit of KRW 517 billion. Although supply volume was stable, KD (Knock-down) sales decreased due to negative exchange rate effects compared to the previous year. Consequently, operating profit also fell by 31% year-on-year.

Meanwhile, Hyundai Glovis decided on a year-end dividend of KRW 6,300 per share, an increase of 10.5% compared to the previous year. Earlier, Hyundai Glovis had announced a dividend policy to increase dividends by at least 5% and up to 50% compared to the previous year. A Hyundai Glovis official stated, "We will continue to maintain an appropriate balance between investment for growth and shareholder returns through dividends based on business performance."

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