Hyundai Motor Company (005380) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 14.4% YoY to KRW 162.664T and operating income increased 54.0% to KRW 15.127T; operating margin improved to 9.3% from 6.9%.

• Global wholesale sales reached 4.217M units in 2023, up 6.9% YoY; eco-friendly vehicle sales increased to 695K from 507K.

Financial highlights

• Q4 2023 revenue increased 8.3% YoY to KRW 41.669T; operating income was KRW 3.408T, up 0.2%, while operating margin declined to 8.2% from 8.8%.

• FY2023 net income was KRW 12.272T, up 53.7% YoY; income before tax rose 57.6% to KRW 17.619T.

• Annual revenue growth was led by automotive revenue of KRW 130.150T, up 14.8% YoY; finance revenue reached KRW 22.401T, up 11.8%.

• FY2023 SG&A decreased 0.5% YoY to KRW 18.358T, while cost of goods sold ratio improved to 79.4% from 80.1%.

Outlook and guidance

• 2024 wholesale sales guidance is 4.24M units; consolidated revenue growth target is 4.0–5.0% and operating margin target is 8.0–9.0%.

• 2024 investment plan is KRW 12.4T; free cash flow excluding finance is projected at KRW 2.5–4.0T.

• 2024 regional plan targets 1.137M units in North America, 704K in Korea, 632K in Europe and 613K in India; global wholesale target is up 0.6% YoY.

• Margin improvement priorities include mix and ASP gains, volume growth and cost innovation; expected headwinds include uncertain macro conditions, limited industry demand growth and intensifying competition.