Hyundai Motor Company (005380) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 6.6% year-on-year to KRW 45 trillion, with net profit up 24.7% to KRW 4.2 trillion; global wholesale volume was 1,055,168 units, retail sales 1,033,612 units, and strong North American SUV and hybrid sales offset weak EV demand.

• Global wholesale sales increased 0.7% year-on-year, with growth in India and Europe, while Korea saw a decline; eco-friendly vehicle share rose in key regions.

• H1 2024 consolidated revenue reached 85.7 trillion KRW, with net income attributable to controlling interest of 7.2 trillion KRW; overseas sales grew, domestic sales declined.

• Strategic focus on electrification, mobility services, and hydrogen, with major R&D and global expansion investments.

Financial highlights

• Q2 operating profit was KRW 4.2 trillion, up 0.7% year-on-year; operating margin 9.5%; EBITDA for Q2 was KRW 5,552B.

• Non-operating income increased 70.2% year-on-year to KRW 1.3 trillion, mainly due to the absence of Russia inventory impairment and higher equity method income.

• SG&A expenses rose 17.2% year-on-year to KRW 5.5 trillion, driven by higher labor and provisioning costs.

• Finance segment operating income grew 32.1% year-on-year; finance revenue up 23.6%.

• Net income margin increased to 9.3% from 7.9% year-on-year.

Outlook and guidance

• U.S. market expected to remain strong in H2, with favorable FX rates supporting profitability; material cost rate expected to remain stable.

• No significant deviation from annual guidance anticipated; any revisions to be communicated in Q3.

• Focus on profitability through premium product mix, cost structure innovation, and digital transformation.

• Ongoing investment in EV platforms, hydrogen fuel cell business, and mobility services.