Geumta, Q3 Sales of 1.115 Trillion KRW and Operating Profit of 142 Billion KRW

Published 30 Oct.2024 10:07(KST)

Preliminary Earnings Announcement... Profitability Improves with Increased Sales of High-Inch Displays

Geumta, Q3 Sales of 1.115 Trillion KRW and Operating Profit of 142 Billion KRW

Kumho Tire (CEO Jeong Il-taek) announced on the 30th that it recorded preliminary results for the third quarter of 2024 with consolidated sales of 1.115 trillion KRW and an operating profit of 142 billion KRW.

Sales increased by 14.1% compared to the same period last year, achieving over 1 trillion KRW in sales for four consecutive quarters since the fourth quarter of 2023. Although the global automobile market continues to experience demand slowdown in the second half, the tire market is steadily growing, driven by expanding demand in the replacement (RE) tire market.

The operating profit margin rose 45.7% year-on-year to 12.6%. Growth continues through an increased proportion of high-margin product sales, and profitability is improving by increasing the sales ratio of high-inch products of 18 inches or larger.

Kumho Tire set its annual sales target at 4.56 trillion KRW, aiming to achieve a 42% sales ratio of products 18 inches or larger and secure more than 16% of EV tire share based on global OE sales as part of its business guidance. According to the third-quarter results, it achieved 72% of the sales target (cumulative sales of 3.2914 trillion KRW), reached 41.8% in high-inch product sales, and secured a 14% share of EV tire OE deliveries.

Kumho Tire is currently strengthening its position in the global market, including the domestic market, through premium product supply, global distribution expansion, and brand awareness enhancement. To target future markets, it is focusing on the development and supply of tires for electric vehicles and launched the electric vehicle dedicated brand ‘EnnoV’ this year to accelerate its premium market strategy. Additionally, by utilizing big data and artificial intelligence technologies in tire development, Kumho Tire has established a ‘tire digital twin’ environment that predicts compound and performance, actively responding to rapid changes in the mobility industry.

Meanwhile, Kumho Tire is considering investment in new global factories to expand new European OE tire models and respond to robust replacement (RE) tire demand. With the stabilization of operations at the existing Vietnam plant, an increase in production volume as well as enhanced tire production capacity and efficiency are expected.