Kia (000270) Q2 2024 earnings summary

Executive summary

• Sales revenue rose 5.0% year-over-year to W27,568 billion in 2Q24, and 1H24 sales reached W53,781 billion, up 7.7% year-over-year.

• Net profit increased 5.0% to W2,957 billion in 2Q24 and 16.8% to W5,766 billion in 1H24.

• Basic EPS for the six months was W14,666, up from W12,447 year-over-year.

• Total assets increased to W86,045,857 million as of June 30, 2024.

• The interim financial statements received an unqualified review from the independent auditor.

Financial highlights

• Operating profit grew 7.1% year-over-year to W3,644 billion in 2Q24 and reached W7,069,442 million for 1H24.

• Gross margin improved to 24.1% in 2Q24 and 23.9% for 1H24.

• Net cash position at 2Q24-end was W16,200 billion; cash and cash equivalents stood at W13,370,542 million.

• Net cash provided by operating activities was W6,001,709 million for the six months.

• Dividends paid during the six months totaled W2,194,277 million.

Outlook and guidance

• Plans to maintain sales momentum with new model launches and expanded HEV/EV lineups globally.

• Focus on supply optimization, dealer network expansion, and product value enhancements in India and China.

• Initiatives to strengthen EV sales in Western Europe and leverage flexible production in the U.S.

• The Group continues to invest in global expansion, including factory expansions in Slovakia and India and the construction of the Global Business Center.

• No single external customer accounted for 10% or more of sales for the six-month periods ended June 30, 2024 and 2023.