Kia (000270) Q2 2024 earnings summary

Executive summary

• Sales revenue for 1H24 rose 7.7% year-over-year to W53,780,758 million, with net profit up 16.8% to W5,765,674 million and operating profit reaching a record W7,069,442 million.

• 2Q24 sales revenue increased 5.0% year-over-year to W27,568 billion, with net profit up 5.0% to W2,957 billion.

• Global retail sales declined 4.1% year-over-year to 760,000 units in 2Q24, but green car (HEV, PHEV, BEV) sales increased, with XEV share rising to 21.4%.

• Basic EPS for 1H24 was W14,666, up from W12,447 year-over-year.

• Total assets increased to W86,045,857 million as of June 30, 2024.

Financial highlights

• Operating profit for 1H24 was W7,069,442 million (+12.6% YoY), with gross margin improving to 24.1% in 2Q24 and 23.9% for 1H24.

• Net cash position at 2Q24-end was W16,200 billion, with cash and equivalents at W13,370,542 million.

• Cost of sales ratio improved to 75.9% in 2Q24; SG&A expense as a percentage of sales increased to 10.9%.

• Debt-to-equity ratio decreased to 69.3% at 2Q24-end.

• Dividends paid during 1H24 totaled W2,194,277 million.

Outlook and guidance

• Plans to maintain sales momentum with new model launches, including K8, Sportage PE, and expanded HEV/EV lineups globally.

• Focus on supply optimization, dealer network expansion, and product value enhancements in India and China.

• Initiatives to strengthen EV sales in Western Europe and leverage flexible production in the U.S.

• No single external customer accounted for 10% or more of sales in 1H24.

• Continued investment in global expansion, including factory expansions in Slovakia and India.