Hyundai Motor Announces 2023 Q4 Business Results

• 2023 annual vehicle sales increased 7% to 4.22 million units
  ⋯ Annual revenue was up 14.4% to KRW 162.7 trillion
  ⋯ Operating profit rose 54% to KRW 15.12 trillion; operating profit margin hit 9.3%
  ⋯ Net profit climbed 54% to KRW 12.27 trillion
  ⋯ Increased sales volume, enhanced product mix and favorable exchange rate
  helped the company achieve solid results

• Q4 2023 sales volume stood at 1.09 million units, up 4.9% year over year
  ⋯ Revenue increased 8.3% Y/y to KRW 41.67 trillion
  ⋯ Operating profit was up slightly to KRW 3.41 trillion from a year earlier; Q4 operating profit margin was 8.2%
  ⋯ Q4 net profit increased 28.8% Y/y to KRW 2.2 trillion

• Hyundai Motor raised the 2023 year-end dividend to KRW 8,400
  ⋯ Annual dividend increased 63% from a year earlier to KRW 11,400
• Hyundai Motor offered 2024 consolidated financial guidance
  ⋯ To target global sales of 4.24 million units; annual revenue growth of 4-5% from 2023 on a consolidated basis; consolidated operating profit margin of 8-9%
  ⋯ 2024 total investment forecast at KRW 12.4 trillion

Hyundai Motor Company today announced its 2023 annual and fourth quarter business results. Last year, the company sold 4,216,898 vehicles worldwide, up 7 percent from 2022. Annual revenue increased 14.4 percent to KRW 162.7 trillion.

Annual operating profit climbed 54 percent to KRW 15.12 trillion, with an operating profit margin of 9.3 percent. Hyundai Motor recorded an annual net profit of KRW 12.27 trillion, up 54 percent year over year.

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In the fourth quarter of 2023, Hyundai Motor sold 1,089,862 units around the globe. Sales in markets outside of Korea were up by 5.3 percent to 891,304 units, backed by strong demand in North America, Europe and India. Sales in Korea increased 3.4 percent to 198,558 units, fueled by strong demand for the all-new SANTA FE SUV, as well as other SUV models.

Over the period from October to December 2023, global electrified vehicle sales (including commercial vehicles) increased 27.7 percent year over year to 173,297 units, driven by a stronger hybrid lineup and sales growth of Hyundai’s dedicated electric vehicle (EV) brand, IONIQ.

EVs accounted for 57,975 units, while hybrids (HEVs) accounted for 103,133 units. For the full year 2023, 695,382 electrified models were sold in the global market, up 37.2 percent year over year, including 268,785 EVs and 373,941 hybrids.

Fourth-quarter revenue increased 8.3 percent year over year to KRW 41.67 trillion. Hyundai Motor’s operating profit over this period rose 0.2 percent from a year earlier to KRW 3.41 trillion, with an operating profit margin of 8.2 percent.

The company recorded a net profit (including non-controlling interest) of KRW 2.2 trillion, up 28.8 percent year over year. Net profit for quarter four 2023 reflected the sale of Hyundai Motor’s manufacturing facility in Russia in December last year, following the suspension of operations in the country since March 2022.

Hyundai Motor will pay a year-end dividend of KRW 8,400 per common share. The company will pay a total of KRW 11,400 per common share for 2023, including the interim dividend of KRW 3,000 in the second and third quarters, a 63 percent increase compared with 2022.

2024 Guidance and Outlook

Hyundai Motor shared financial guidance with markets to enhance transparent communication. In 2024, the company is targeting consolidated revenue growth of between four and five percent, and an annual consolidated operating profit margin of eight to nine percent. The company aims for total vehicle sales of more than 4.24 million units this year, up 0.6 percent compared to 2023.

The company plans to expand its investment total to KRW 12.4 trillion, including KRW 5.6 trillion in capital expenditure, KRW 4.9 trillion in research and development, and KRW 1.9 trillion in strategic investments.
Hyundai Motor expects the business environment will remain difficult to predict, due to macro uncertainties centered on emerging markets and a downturn in the real economy. In addition, the company expects fluctuation in foreign exchange rates and increased sales-related costs due to intensified competition among companies around the globe.

Hyundai Motor plans to expand sales of electrified vehicles by increasing global awareness of its dedicated EV brand, IONIQ, and further strengthening its hybrid vehicle lineups. The company will also optimize its sales and profitability while expanding market share with its SUV lineups and Genesis luxury brand models.