Kia Motors announces 2019 fourth-quarter business results
- Q4 2019 sales revenue at KRW 16.11 trillion, up 20% Y/y
- Quarterly operating profit at KRW 590.5 billion, up 55% Y/y
- Q4 net profit at KRW 346.4 billion, more than tripled from KRW 94.3 billion
- Global sales of 728,296 units vs. 738,915 in Q4 2018
- Kia targets total global sales of 2.96 million units in 2020
- Company to cement fundamentals for sustainable growth with enhanced future competitiveness
Kia Motors Corporation today announced its 2019 fourth-quarter business results, reporting a 20 percent rise, year-on-year, in quarterly revenue – driven by increased sales of new models and aided by favorable currency exchange rates.
Kia Motors recorded sales revenue of KRW 16.11 trillion throughout the final quarter of the year, 20 percent higher than the KRW 13.47 trillion recorded over the same period in 2018.
Kia’s fourth-quarter operating profit jumped 55 percent, year-on-year, to KRW 590.5 billion, up from KRW 382 billion in the final quarter of 2018. This was supported by the ongoing success of the brand’s latest models, with the Seltos SUV, Telluride mid-size SUV, and K7 sedan leading the enhanced Kia global product mix. Entry into new global markets such as India further enhanced profitability.
The Telluride SUV, which won the coveted 2020 North American Utility Vehicle of the Year award earlier this month, booked retail sales of around 58,000 units in the US alone, resulting in a significant boost to Kia’s revenue and profitability.
Fourth-quarter net profit (including non-controlling interests) more than tripled to KRW 346.4 billion, compared to KRW 94.3 billion posted in the same period in 2018, when a one-off expense weighed on the company’s results.
Unit sales in final quarter of 2019 declined by 1.4 percent year-on-year to 728,296 units from 738,915 (wholesale basis).
For full-year 2019, Kia’s revenue rose 7.3 percent to KRW 58.15 trillion from KRW 54.17 trillion in 2018, while operating profit soared 74 percent to KRW 2.01 trillion, up from KRW 1.16 trillion. Net profit rose 58 percent to KRW 1.83 trillion.
Full-year global unit sales declined 1.4 percent from 2018 to 2.77 million units, with 520,205 units sold in Korea and 2.25 million across the rest of the world.
For 2020, Kia is targeting global sales of 2.96 million units, with a ‘golden cycle’ of new models helping the company counter the low-growth trend across the global auto industry.
The company will continue to strengthen its future competitiveness by implementing its ‘Plan S’ mid- to long-term strategic roadmap. Plan S was announced earlier this month, outlining a pre-emptive shift to electrification and the roll-out of next-generation mobility solutions. Under Plan S, Kia announced plans to introduce 11 battery-electric models across its product line-up over the next five years to secure a 6.6 percent share of the global EV market by the end of 2025. Kia also aims to achieve a 6 percent operating profit margin by 2025.
Kia’s board of directors today approved a plan to pay a year-end dividend of KRW 1,150 per share, up from KRW 900 in 2018. The company is seeking to balance new investment needs and shareholder returns alongside its mid to long-term commitment to enhance shareholder-friendly policies and communicate more transparently with markets.
Kia Motors Corporation 2019 Q4 Business Results (K-IFRS)
|Rest of The World||601,915||2,280,593||583,408||2,251,871|
* Revenue / Operating Profit / Net Profit: KRW 100 million
* Net Profit includes non-controlling interest
A. The above 2019 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.
D. For further information, please refer to the company website (http://www.kia.com/worldwide/main.do)
Presentation material is available for download on the Company IR website – IR Calendar (http://pr.kia.com/en/company/ir/ir-library/business-results.do)