Kia announces 1Q 2022 business results

  • 1Q global sales totaled 685,739 units, little changed from 689,990 a year ago
  • 1Q revenue at KRW 18.36 trillion, up 10.7% from KRW 16.58 trillion,
  • 1Q operating profit at KRW 1.61 trillion; net profit KRW 1.03 trillion
  • Operating profit margin at 8.8% in 1Q, a 49.2% increase from year earlier
  • Kia to continue to expand EV sales with competitive models such as EV6

Kia Corporation has announced its 2022 first-quarter business results, reporting revenue of KRW 18.36 trillion and operating profit of KRW 1.61 trillion with an operating profit margin of 8.8%.

Between January and March, Kia sold 685,739 units across global markets, a 0.6 percent decrease compared to the same period last year. Sales outside of Korea recorded a 0.7 percent increase to 564,075 units.

Markets outside of Korea experienced a sales increase thanks to a strong market demand for Kia vehicles. The company’s efforts to minimize production disruptions also helped support the sales increase. Kia’s Korean market sales witnessed a 6.5% decrease compared to a year earlier due to the production disruption stemming from the parts shortage.

Kia’s first-quarter operating profit rose to KRW 1.61 trillion from KRW 1.08 trillion a year earlier, with an operating profit margin of 8.8 percent. The company also recorded a net profit (including non-controlling interests) of KRW 1.03 trillion, on par with figure from a year earlier.

The strong performance was supported by Kia’s enhanced product mix. With the success of the brand’s higher-margin RV models, such as Sorento and Sportage, RV sales accounted for a record-high 61.3% of overall vehicle sales. Also, Kia’s improved brand perception, its efforts to cut down on incentives, and the favorable foreign exchange environment supported improvements in profitability.

For the first quarter, Kia recorded retail sales of 110,043 electrified vehicles, accounting for 15.8 percent of overall sales and a 75.2 percent increase from the same period a year earlier. Of the electrified vehicle sales, retail sales of BEV models accounted for 43,150 units, a 148.9 percent increase year-on-year. Kia’s EV sales are expected to further accelerate in line with the continued media and public appreciation of the brands new models. The EV6, Kia’s first dedicated BEV model, was recently announced as the European Car of the Year proving its competitiveness.

Going forward, Kia will continue its electrification efforts and its transition to becoming a sustainable mobility solutions provider through introducing innovative mobility products and services. In the long term, Kia aims to achieve annual sales of 1.2 million BEV units by 2030.

Kia anticipates the automotive demand to rebound from the impact of COVID-19 pandemic while the semiconductor shortage is expected to gradually improve.

In response to the current market challenges, Kia is flexibly adjusting its production and market distribution plans in line with inventory status and to minimize production disruption. Kia will also continue to focus on improving its product mix.

(Revenue / Operating Profit / Net Profit unit: Billion KRW)

2022 1Q 2021 1Q Y/y Change
Vehicle sales (Units) 685,739 689,990 -0.6%
Korea 121,664 130,075 -6.5%
Sales outside of Korea 564,075 559,915 0.7%
Revenue 18,357.2 16,581.7 10.7%
Operating profit 1,606.5 1,076.4 49.2%
Net profit 1,032.6 1,035.0 -0.2%

* Net Profit includes non-controlling interest

* Under K-IFRS

Notes:
A. The above 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 unless otherwise specified.
D. For further information, please refer to the company website (http://www.kia.com/worldwide/main.do)