March 5, 2021

Kia announces 2020 fourth quarter business results

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Kia Corporation
  • 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

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 -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)

 20202019
4Q 4Q 
Vehicle Sales (Units)742,6952,606,832742,7332,821,175
 Korea137,389552,400144,888520,205
Rest of the world605,3062,054,432597,8452,300,970
Revenue16,910.659,168.116,105.458,146.0
Operating Profit1,281.62,066.5590.52,009.7
Net profit976.81,502.7346.41,826.7

* 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)

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