Hyundai Motor Company (005380) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 6.6% year-on-year to KRW 45 trillion, with net profit up 24.7% to KRW 4.2 trillion; global wholesale volume was 1,055,168 units, and retail sales were 1,033,612 units.

• Excluding China, wholesale increased 2.2% year-on-year, led by strong North American sales, especially SUVs and hybrids.

• Eco-friendly vehicle sales share remained stable, with hybrid sales up 26% year-on-year and EV sales down 25% year-on-year.

• The company completed the sale of Hyundai Motor Manufacturing Rus LLC, with related losses classified as discontinued operations.

• Acquisition of hydrogen fuel cell segment from Hyundai MOBIS for W217.5 billion to enhance competitiveness in hydrogen business.

Financial highlights

• Operating profit for Q2 was KRW 4.2 trillion, up 0.7% year-on-year; operating margin was 9.5%.

• Non-operating income increased 70.2% year-on-year to KRW 1.3 trillion, mainly due to the absence of last year's Russia inventory impairment and higher equity method income.

• SG&A expenses rose 17.2% year-on-year to KRW 5.5 trillion, driven by higher labor and provisioning costs.

• Finance segment revenue up 23.6% and operating profit up 32.1% year-on-year.

• EBITDA for Q2 2024 was KRW 5,552B, up slightly from KRW 5,542B in Q2 2023.

Outlook and guidance

• U.S. market expected to remain strong in H2, with favorable FX rates supporting profitability.

• No significant deviation from annual guidance anticipated; any revisions will be communicated in Q3.

• Material cost rate expected to remain stable in H2, with continued mix improvement and steady raw material prices.

• Shareholder return policy updates, including long-term plans, to be announced at CEO Investor Day in late August.

• Management highlighted risks from economic conditions, currency fluctuations, and market competition.