Kia's Highest Operating Profit and Sales... Hyundai Motor Recovers to Pre-COVID Levels
Mobis Hits First 40 Trillion Won in Sales... Glovis Records All-Time High Sales and Operating Profit
[Asia Economy Reporter Kiho Sung] Major affiliates of Hyundai Motor Group achieved record-high sales last year, showing steady progress. In particular, Kia Motors and Hyundai Glovis recorded their highest-ever operating profits. This strong performance came despite the ongoing COVID-19 situation and the global shortage of automotive semiconductors.
Kia Motors announced on the 26th that its preliminary operating profit for last year was 5.0657 trillion KRW, a 145.1% increase compared to the previous year. The previous record was 3.5223 trillion KRW in 2012, making this the highest performance since the introduction of the new accounting standards (IFRS) in 2010.
The operating profit margin was 7.3%, the highest since 7.5% in 2012, and net profit reached 4.7603 trillion KRW, a 220% increase from the previous year. Sales amounted to 69.8624 trillion KRW, marking an all-time high, up 18.1% from the previous year.
The total number of vehicles sold, combining domestic and overseas markets, increased by 6.5% year-on-year to 2,776,359 units. Domestic sales decreased by 3.1% to 535,016 units, but overseas sales rose by 9.1% to 2,241,343 units.
Hyundai Motor Company, which announced its results the day before, also recovered to pre-COVID-19 performance levels. Operating profit was 6.6789 trillion KRW, up 178.9% from the previous year, marking the highest since 2014. Net profit increased by 195.8% to 5.6931 trillion KRW. Sales reached 117.6106 trillion KRW, a 13.1% increase from the previous year, setting a new record. Vehicle sales rose 3.9% year-on-year to 3,890,726 units.
Although sales volume was lower than expected, the increase in sales and operating profit was driven by higher sales of high value-added vehicles. The expansion in sales of luxury brand Genesis, sports utility vehicles (SUVs), and eco-friendly vehicles such as electric cars appears to have driven the improved results.
Hyundai Mobis reported consolidated sales of 41.7022 trillion KRW last year, a 13.9% increase from the previous year. This is the first time annual sales have exceeded 40 trillion KRW. Operating profit rose 11.5% to 2.0401 trillion KRW, and pre-tax net profit increased 50.8% to 3.1945 trillion KRW. Net profit for the period was 2.3625 trillion KRW, up 54.7% from the previous year.
Hyundai Mobis explained that despite the challenging business environment caused by the prolonged COVID-19 pandemic and global supply chain instability leading to reduced vehicle production, sales growth was driven by increased sales of electrification parts due to the expansion of eco-friendly vehicle production.
Hyundai Glovis also achieved record-high sales and operating profit last year. Hyundai Glovis's consolidated operating profit for last year was preliminarily estimated at 1.1262 trillion KRW, a 70.1% increase from the previous year. Sales rose 31.8% year-on-year to 21.7796 trillion KRW. Net profit increased 29.2% to 783.2 billion KRW.
Hyundai Glovis delivered balanced results across all logistics, shipping, and distribution businesses due to the recovery in vehicle demand following the global economic rebound. Hyundai Glovis explained that it achieved results exceeding market expectations by expanding freight contracts with companies outside the Hyundai Motor Group affiliates.
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