Hyundai Motor Company (005380) Q3 2024 earnings summary

Executive summary

• Q3 2024 global wholesale volume decreased 3.2% year-on-year to 1,011,808 units; retail sales fell 3.1% year-on-year to 988,594 units.

• Q3 2024 revenue reached KRW 43 trillion, up 4.7% year-on-year, but net income declined 3% to KRW 3.2 trillion.

• Operating profit margin declined to 8.3% from 9.3% in Q3 2023, impacted by higher incentives and a one-time warranty provision.

• Domestic and North America sales rose, while Europe and India saw declines; hybrids up 45.4% year-on-year, EVs down 8.1%.

• For the nine months ended September 30, 2024, revenue was W128.6 trillion and net income W10.25 trillion.

Financial highlights

• Automotive revenue grew 5.3% year-on-year; finance revenue up 10.1% year-on-year.

• Operating profit for Q3 2024 was KRW 3.6 trillion, down 6.5% year-on-year; EBITDA was KRW 4,854B.

• Cost of goods sold ratio increased to 80.2% year-on-year; SG&A up 6.1% to KRW 4.9 trillion.

• Gross profit for the nine months was W26.66 trillion; basic EPS for nine months was W39,051.

• Cash and equivalents at Q3 2024 end were KRW 14,992B, down from KRW 18,146B in Q2 2024.

Outlook and guidance

• 2024 annual guidance maintained: 4%-5% sales growth and 8%-9% operating margin.

• Short-term profitability pressured by higher incentives and market uncertainties; mid- to long-term margin target at 8%-9%.

• No material impact expected from Pillar Two legislations on 2024 income tax.

• Continued investment in R&D and strong liquidity position to support growth.