- 3Q revenue at KRW 23. 2 trillion, up 30.5% year-on-year
- 3Q operating profit at KRW 768 billion; net profit 459 billion
- 3Q global sales totaled 752,104 units, up 9.9% year-on-year with the easing supply conditions
- 3Q operating profit margin stayed at 3.3% due to the one-off quality-related warranty provisions, with year-to-date operating profit margin at 7.3%
- 3Q all-electric model sales recorded 40,000 units, up 34.3% year-on-year and overall eco-friendly vehicle sales increased 47% to 123,000 units year-on-year
- Kia to continue to expand EV sales with competitive models such as EV6
Kia Corporation today announced its 2022 third-quarter business results, reporting revenue of KRW 23.2 trillion and total global sales of 752,104 units, up 9.9 percent compared with a year earlier as supply conditions eased around the globe.
Sales outside of Korea recorded a 10.7 percent increase to 619,336 units. Kia’s Korean market sales witnessed a 6.2 percent increase compared with a year earlier following record sales of 132,768 units.
The gross revenue in the quarter witnessed a 30.5 percent increase to KRW 23.2 trillion supported by easing supply condition, competitive products such as EV6 and Sportage, enhanced brand perception that led to the improved trim mix of vehicles sold, and favorable exchange rates.
The company recorded an operating profit of KRW 768 billion and a net profit of 459 billion, down 42.1 percent and 59.6 percent respectively. The decrease mainly stemmed from one-off quality-related warranty provisions in the quarter as the company continues to place the utmost focus on protecting customer safety and ensuring vehicle quality. As a result, an operating profit margin of 3.3 percent was recorded for the third quarter.
Year to date, Kia recorded global sales of 2.17 million units, with a gross revenue of KRW 63.39 trillion won – increases of 2 percent and 20.4 percent respectively. The operating profit recorded was KRW 4.6 trillion, up 18.5 percent year on year, with an operating profit margin of 7.3 percent. A net profit of KRW 3.4 trillion was recorded, down 4 percent.
For the third quarter, Kia recorded retail sales of 123,000 electrified vehicles, accounting for 16.8 percent of overall sales, which is a 5.6 percentage point increase from a year earlier. Of the electrified vehicle sales, retail sales of BEV models accounted for 40,000 units, a 34.3 percent increase year on year.
Kia is showing robust EV sales growth in the key markets across the globe. In the third quarter, Kia’s BEV sales proportion in Korea increased to 12.3 percentage point from 7.5 percentage point a year earlier. The US market BEV sales proportion grew to 3.2 percentage point from 1.7 percentage point a year earlier. Kia’s Western European market continued to show solid BEV sales with sales proportion of 11.7 percentage point.
With robust growth BEV sales in Korea and US, Kia’s BEV models are sold evenly across the key markets. Korea accounted for 40.8 percent of Kia’s BEV sales, while Western Europe and US markets accounted for 38.9 percent and 14.6 percent of BEV sales respectively.
Kia’s EV sales are expected to further accelerate in line with the continued media and public appreciation of the brand’s new models. The EV6, Kia’s first dedicated BEV model, was named European Car of the Year in February. Securing this highly prestigious title affirms both Kia’s lead in sustainable mobility and the considerable customer appeal of the EV6. The all-new Niro, which features a broad range of electrified powertrain options, is further strengthening Kia’s comprehensive electrification offer.
Kia plans to continue expanding sales of electrified models with competitive models such as the EV6 and also focus on high margin SUV models in order to increase profitability. Furthermore, the company will continue improving the product and trim mix in line with Kia’s enhanced brand perception.
Going forward, Kia will continue to transition rapidly into a sustainable mobility solutions provider by introducing innovative mobility products and services. In the long term, Kia aims to achieve annual sales of 1.2 million units of BEVs and 0.2 million units of PBVs by 2030.
(Revenue / Operating Profit / Net Profit unit: Billion KRW)
| 2022 3Q | 2021 3Q | Y/y Change | |
| Vehicle Sales(Units) | 752,104 | 684,303 | 9.9% |
| Kores | 132,768 | 124,964 | 6.2% |
| Sales outside of Korea | 619,336 | 559,339 | 10.7% |
| Revenue | 23,132.0 | 17,752.8 | 30.5% |
| Operating profit | 768.2 | 1,327.0 | -42.1% |
| Net profit | 458.9 | 1,134.7 | -59.6% |
* Net Profit includes non-controlling interest
* Under K-IFRS
A. The above results are tentative consolidated business results under “Korean International Financial Reporting Standards (K-IFRS)”
B. The above results are preliminary and unaudited. Figures are subject to change after official audit.
C. The above sales volumes are based on wholesales unless otherwise specified.
D. For further information, please refer to the company website – (link)
E. Presentation material is available for download on the Company IR website – (link)