KGM ends Q1 with a surplus for the second consecutive year
Total revenue of 1 trillion won led by an increase in export sales
Year-on-year export sales increase of 39.2% driven by a steady increase in overseas demand over the past three months
KGM to further improve its financial position by strengthening global marketing strategies and a number of new model launches
[April 22, 2024] KGM (www.kg-mobility.com)has announced that it sold a total of 29,326 vehicles in the first quarter (Q1) of 2024 generating a revenue exceeding 1 trillion won, a net profit of 53.9 billion won (approx. USD 39.2 million) and an operating profit of 15.1billion won (approx. USD 11 million).
This much improved performance was primarily driven by an increase in export sales, improvements in production efficiency and cost reductions, CO2 penalty returns resulting from sales of the electric Torres EVX, and profits on the valuation of the pre-emptive rights to new stocks.
The surplus in Q1 2023 delivered a net profit of 9.4 billion won (approx. USD 6.8 million) and an operating profit of 8.1 billion won (approx. USD 5.9 million). This was the first time the company had traded profitably in seven years since Q1 2016, when the business (previously known as SsangYong Motor Company) recorded a net profit of 8.1 billion won (approx. USD 5.9 million) and an operating profit of 2.3 billion won (approx. USD 1.7 million). The Q1 surplus of 2024 marks two consecutive years of trading in the black during the first quarter. Led by a steady increase in export sales, KGM has been able to achieve a total revenue of over 1 trillion won for the past three quarters – Q3 & Q4 of 2023 and Q1 of 2024.
Despite a decline in domestic sales, the strong increase in export sales has enabled KGM to sell more than 10,000 vehicles in March, showing a positive trend in recovery over three consecutive months: January, February and March 2024.
Steadily increasing export sales over the past three consecutive months has delivered a year-on-year sales growth of 39.2%, resulting in this Q1 surplus. KGM’s Q1 export sales performance has been the highest in the past 10 years when in Q1 of 2014 the company exported a total of 19,874 vehicles.
In an effort to increase its international sales performance, KGM has hosted a number of global events. Following the Torres EVX European launch and test drive in Türkiye in March, a similar event was staged in New Zealand for both the Torres and Torres EVX. Additionally, KGM will be focusing on developing strategies to further enhance customer satisfaction and increase sales in its domestic marketplace.
A KGM official commented: “We are delighted that the increase in export sales has allowed us to achieve a revenue of 1 trillion won. We have also increased profits through the valuation of the pre-emptive rights to new stocks and will continue to build on our surplus from last year. We plan to further increase sales at home and abroad, thereby further strengthening the company’s financial position, by bolstering our global marketing strategies and launching several new vehicles, including our MY24 products and a new SUV-D model.”