Kia recorded the highest ever operating profit of 3.4 trillion won in the first quarter… Operating profit margin exceeded 13%

Kia recorded record-high performance in both operating profit and operating profit ratio in the first quarter of this year. This is the result of a focus on high value-added vehicles such as recreational vehicles (RVs) and hybrids, coupled with high exchange rates and reduced raw material costs.

Kia announced on the 26th that its first quarter operating profit recorded 3.4257 trillion won, a 19.2% increase compared to the same period last year. Operating profit is the highest quarterly record ever. This is the first time that Kia’s quarterly operating profit exceeded 3.42 trillion won. The operating profit margin reached 13.1%. Sales were calculated at 26.2129 trillion won. This is a 10.6% increase compared to the same period last year. It is the second largest since the second quarter of 2023.

A Kia official said, “Global industrial demand showed limited growth, but profitability expanded thanks to improved product mix centered on high-margin vehicles, positive exchange rate effects, and material cost reduction effects.”

Kia’s first quarter sales recorded 137,871 units in Korea, a 2.9% decrease from the previous year, 622,644 units overseas, a 0.6% decrease from the previous year, and 760,515 units, a 1% decrease from the previous year in the global market.

The cost of sales ratio recorded an all-time low of 76.2%, an improvement of 1.1 percentage points (p) compared to the same period last year. The sales management ratio rose 0.1%p from the previous year to 10.7%, maintaining a similar level to the same period last year.

Kia’s first quarter eco-friendly car sales increased 18.1% from the previous year to 157,000 units, driven by increased hybrid sales.

Kia predicted that a difficult business environment will continue this year due to the unstable external environment, such as expanding global risks, sluggish real economy, and weakening consumer purchasing sentiment due to high interest rates.
A Kia official said, “We will continue to expand sales of hybrid-based RVs such as Sorento, Carnival, and Sportage in the domestic market and continue sales momentum through the successful launch of the new EV3 and EV6 models with improved marketability.” “We will continue to pursue a pricing policy consistent with marketability and maximize profitability,” he said.

Reporter Kim Ji-woong [email protected]