Kia Corporation today announced its 2022 second-quarter business results, reporting revenue of KRW 21.88 trillion and operating profit of KRW 2.23 trillion with an operating profit margin of 10.2 percent.
Between April and June 2022, Kia sold 733,749 units across global markets, a 2.7 percent decrease compared to the same period last year. Sales outside of Korea recorded a 2.1 percent decrease to 592,881 units. Kia’s Korean market sales witnessed a 5 percent decrease compared to a year earlier due to the production disruption stemming from the parts shortage.
Kia’s second-quarter operating profit increased by 50 percent to KRW 2.23 trillion from KRW 1.49 trillion a year earlier, with an operating profit margin of 10.2 percent. The company also recorded a net profit (including non-controlling interests) of KRW 1.88 trillion, a 40 percent increase from a year earlier.
The strong performance was supported by Kia’s enhanced product mix. With the success of the brand’s higher-margin RV models, such as the Sportage, RV sales accounted for a record-high 65 percent of overall vehicle sales. Also, Kia’s efforts to cut down on incentives, and the favorable foreign exchange environment further enhanced profitability.
For the second quarter, Kia recorded retail sales of 133,000 electrified vehicles, accounting for 17.7 percent of overall sales which is an 8.7 percentage point increase from year earlier. Of the electrified vehicle sales, retail sales of BEV models accounted for 44,000 units, a 98 percent increase year-on-year.
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 Kia’s lead in sustainable mobility, and the considerable customer appeal of the EV6. The newly launched Niro, which features a broad range of electrified powertrain options, is further strengthening Kia’s comprehensive electrification offer.
Going forward, Kia will continue to rapidly transition to 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.
Kia anticipates the demand for automotive products to increase, as customer interest in, and demand for eco-friendly vehicles continues to grow. Furthermore, Kia expects the global semiconductor shortage to gradually improve.
In response to the current market challenges, Kia is flexibly adjusting its production and market distribution plans in line with inventory status and to minimize production disruption.
(Revenue / Operating Profit / Net Profit unit: Billion KRW)
|2022 2Q||2021 2Q||Y/y Change|
|Vehicle sales (Units)||733,749||754,117||-2.7%|
|Sales outside of Korea||592,881||605,808||-2.1%|
* 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)