Kia reports record-high profit, sales in Q2

Industry

Published: 27 Jul. 2023, 17:47

Kia reports record-high profit, sales in Q2

A passerby looks at an EV9 displayed at the Kia EV Unplugged Ground exhibition center in Seongsu-dong, eastern Seoul. [NEWS1]

Kia posted a record-high operating profit of 3.4 trillion won ($2.7 billion) in the second quarter, aided by boosted sales of high-margin vehicles and a weak local currency.

The Korean automaker's operating profit is up 52.3 percent on year, the first time its quarterly figure has surpassed the 3 trillion-won mark.

It overshot the market consensus of 3.1 trillion won compiled by market tracker FnGuide.

Sales rose 20 percent to 26.2 trillion won, another record high. It beat the analyst expectation of 25.7 trillion won.

Net profit jumped 49.8 percent to another all-time high of 2.8 trillion won during the same period, also beating the consensus of 2.4 trillion won.

Kia cited enhanced sales of high-margin models and a weakening local currency for its strong figures.

Kia sold a total of 807,772 vehicles in global markets in the April-to-June period, up 10.1 percent on year.

The average cost of the sold vehicle was 34.6 million won, up by 10.3 percent on year. High-margin SUVs accounted for 68 percent of its total sales.

Sales of high-margin eco-friendly vehicles including EVs and hybrids, also rose 13.1 percent. They accounted for 18.9 percent of its total sales, up by 1.2 percentage points.

Joo Woo-jeong, chief finance officer of Kia, claimed sales will grow further in the second half, with an emphasis on its EV6 range.

"Kia will focus on selling EV6s overseas in the second half," Joo said during a conference call on Friday. "EV9 will be the core product starting in 2024 when the model will be launched in the United States and European markets."

Kia upped its sales forecast for the year to 100 trillion won, higher than its January guidance of 97.6 trillion won.

Kia shares rose 0.6 percent to close at 83,100 won on Thursday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]