Hyundai Glovis Q1 Operating Profit Reaches 521.5 Billion Won: "Middle East Risk Limited"

Revenue Reaches 7.81 Trillion Won

Hyundai Glovis announced on April 23 that its operating profit for the first quarter reached 521.5 billion won, an increase of 3.9% compared to the same period last year. Revenue was 7.8127 trillion won, up 8.2% year-on-year. The operating margin stood at 6.7%.

The company explained that it delivered robust results despite heightened uncertainty in the global trade environment, including conflicts in the Middle East.

In the logistics sector, Hyundai Glovis recorded revenue of 2.4902 trillion won and an operating profit of 164 billion won. While domestic revenue grew 1.3% year-on-year, driven by increased transportation volumes of electric vehicles (EVs) and large vehicles, the weakness in container freight rates somewhat constrained the growth of the global logistics business, resulting in a 17.3% decline in operating profit.

In the shipping business, revenue reached 1.4522 trillion won and operating profit was 192.6 billion won, representing increases of 15.5% and 40.5%, respectively, compared to the previous year. The company attributed these gains to a rise in high-rate, non-affiliate cargo, such as from Chinese original equipment manufacturers (OEMs), and cost improvements resulting from fleet operation rationalization.

Additionally, regarding Middle East risks, Hyundai Glovis acknowledged concerns over reduced volumes and one-off costs due to strait blockades. However, it stated that the strong growth in non-affiliate customer cargo, such as exports of finished vehicles from China, had a more positive impact on performance.

Hyundai Glovis commented, "Given the export growth trend from China, we believe the risk of reduced car carrier volumes due to Middle East regional risks is limited."

In the distribution sector, revenue amounted to 3.8703 trillion won and operating profit was 164.9 billion won. Revenue rose 10.3% year-on-year, while operating profit decreased 1.0%. The growth was attributed to increased supply volumes of semi-knocked down (CKD) parts to assembly plants supporting technology in emerging markets.

A Hyundai Glovis representative stated, "Although uncertainty in the global trade environment persisted, we achieved results surpassing market expectations across all business divisions based on stable operations. We will continue to prioritize supply chain stability and service quality, and maintain a balance between profitability and growth by responding swiftly to rapidly changing market conditions."

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