Kia Records Sensible Business For 2024 Third Quarter

SAUDI ARABIA : Kia has revealed the business results for the third quarter of 2024 and it’s been a decent show for the Korean giant. One of the best things for the brand was its increase in EV sales globally

• As for the total global sales, the brand saw a tiny decrease 
• Kia is planning to cancel what’s remaining of the treasury stock by the end of the year
• As for the profit margin (operating), it’s around the 12% mark 

Kia's Third Quarter Business Results

Kia Corp reported third-quarter 2024 financials, projecting a positive year-end since it had upgraded its full-year financial forecast. Kia's newly set targets will encompass consolidated annual revenue of KRW 105 trillion to KRW 110 trillion with operating profits ranging between KRW 12.8 trillion to KRW 13.2 trillion and an estimated operating profit margin surpassing 12 percent.

Kia has reported year-over-year revenue growth of 3.8 percent for the third quarter at KRW 26.52 trillion. That increase is attributed to the high average selling price of automobiles due to growth in RV and EV sales, which are still in high demand.

Profits

Kia's operating and net profits for Q3 are up by 0.6 percent and 2.1 percent respectively. The operating profit is KRW 2.88 trillion, and the net profit is KRW 2.27 trillion. Operating profit margin has been above double digits for eight consecutive quarters. The Q3 figure came in at 10.9 percent, pretty strong. This is a streak starting in Q4 2022 and a testament to the company's ability to secure sequential profit growth.

The raw material costs were steady, currency exchange rates favorable, and a stronger mix of products contributed to several reasons why Kia did well in Q3. These gains recompensed the financial effects of provisions for extensions to certain warranties taken ahead in the period. On this basis, if the provision, operating profit would have been KRW 3.51 trillion with an operating margin of 13.2 percent for the period.

Sales

Kia sold a total of 763,693 vehicles worldwide in Q3 2024, which is 1.9 percent lower compared to the same quarter of the previous year. The decline was mainly due to temporary shutdowns of some Kia manufacturing plants to be upgraded. In addition, some selective model line-up adjustments also led to decreased sales.

However, Kia did win in important regions such as North America, India, the Middle East, and Asia-Pacific. The leisure vehicles have been big magnets -- especially the Sportage and Telluride SUVs -- in these regions. In Europe, lower EV subsidies and fewer variants available from the brand kept sales outside of Korea down by 0.8 percent.

EVs

During Q3 of 2024, Kia witnessed a marked increase in the sales volume of its electrified vehicles at the global retail front, registering 155,000 units sold there. The year-over-year growth was 3.6 percent. 

Hybrids seemed to be trending well, and thus the hybrid models of Sportage and Carnival began to be thumping hotspots for this company. Its all-electric vehicle, SUV EV3, registered decent acceptance in the market, and this furthered the momentum of the company in the EV segment.