Kia announces 2020 fourth quarter business results

·       4Q revenue at KRW 16.91 trillion, up 5% Y/y

·       4Q global wholesales volume at 742,695 units, slight decrease from 742,733 units in the previous year

·       4Q operating profit soared 117% Y/y to KRW 1.28 trillion; Quarterly operating profit margin of 7.6%

·       4Q net profit jumped 182% Y/y to KRW 976.8 billion

·       Kia targets total global sales of 2.92 million units in 2021

·       The company will build sales momentum and profitability with new model line-ups, including its first dedicated BEV model

(SEOUL) January 27, 2021 – Kia today announced its 2020 fourth-quarter business results, reporting a 5 percent year-on-year rise in quarterly revenue to KRW 16.91 trillion.

During the October-December period, Kia sold 742,695 units across global markets, a slight decrease from 742,733 units compared to the same period last year. Sales in Korea decreased 5.2 percent to 137,389 units, due to the ongoing challenges presented by the Covid-19 pandemic and product disruptions. Sales outside of Korea climbed 1.2 percent to 605,306 with strong recovery in the U.S, alongside significant growth in India.

The company’s fourth-quarter operating profit more than doubled from a year earlier to KRW 1.28 trillion, with an operating profit margin at 7.6%. The company’s net profit also increased to KRW 976.8 billion, up 182 percent during the same period. 

The strong performance was supported by Kia’s enhanced global product mix and ongoing success of the brand’s high-margin RV models, including Telluride, Seltos, and Sorento SUVs and the Carnival minivan. Sales of Kia’s RV models accounted for 58.7 percent of the total sales volume, the highest RV share ever and leading overall profit growth.

For full-year 2020, Kia’s revenue rose 1.8 percent to KRW 59.17 trillion from KRW 58.15 trillion in 2019, while operating profit advanced 2.8 percent to KRW 2.1 trillion, up from KRW 2 trillion. Net profit decreased by 17.7 percent to KRW 1.5 trillion.

Full-year global sales volume decreased 7.6 percent from 2019 to 2.61 million units, with 552,400 units sold in Korea and 2.05 million across the rest of the world.

2021 Outlook

For 2021, Kia is targeting global sales of 2.92 million units, a 12.1 percent increase compared to 2020 global sales volume. The company is targeting sales in Korea of 535,000 units and 2.39 million units for sales outside of Korea. Kia will continue to enhance its product lineup with new models, including the launch of its first dedicated battery electric vehicle model.

Kia’s board of directors today approved a plan to pay a year-end dividend of KRW 1,000 per share. The company is seeking to balance new investment needs and shareholder returns alongside its mid to long-term commitment to enhance shareholder-friendly policies.

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

		2020		2019
		4Q			4Q
Vehicle Sales (Units)		742,695	2,606,832		742,733	2,821,175
	Korea	137,389	552,400		144,888	520,205
	Rest of the world	605,306	2,054,432		597,845	2,300,970
Revenue		16,910.6	59,168.1		16,105.4	58,146.0
Operating Profit		1,281.6	2,066.5		590.5	2,009.7
Net profit		976.8	1,502.7		346.4	1,826.7

* 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.
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) 

Kia Corporation – about us

Kia (www.kia.com) is a global mobility brand with a vision to create sustainable mobility solutions for consumers, communities, and societies around the world. Founded in 1944, Kia has been providing mobility solutions for more than 75 years. With 52,000 employees worldwide, a presence in more than 190 markets, and manufacturing facilities in six countries, the company today sells around three million vehicles a year. Kia is spearheading the popularization of electrified and battery electric vehicles and developing a growing range of mobility services, encouraging millions of people around the world to explore the best ways of getting around. The company's brand slogan – ‘Movement that inspires’ – reflects Kia’s commitment to inspire consumers through its products and services.

 

For more information, visit the Kia Global Media Center at www.kianewscenter.com