Hyundai Motor Company (005380) Q3 2024 earnings summary

Executive summary

• Q3 2024 global wholesale volume decreased 3.2% year-on-year to 1,011,808 units; retail sales fell 3.1% year-on-year to 988,594 units.

• Q3 2024 revenue reached KRW 43 trillion, up 4.7% year-on-year but down 4.6% sequentially.

• Net profit for Q3 2024 was KRW 3.2 trillion, a 3% decrease year-on-year and a 23.2% drop from Q2 2024.

• Operating income margin declined to 8.3% from 9.3% in Q3 2023.

• Strong hybrid sales growth offset weaker EV demand; hybrids up 45.4% year-on-year, EVs down 8.1%.

Financial highlights

• Automotive revenue grew 5.3% year-on-year to KRW 34,019B; finance revenue rose 10.1% to KRW 6,497B.

• Operating profit decreased 6.5% year-on-year to KRW 3.6 trillion, impacted by higher incentives and one-time warranty costs.

• EBITDA for Q3 2024 was KRW 4,854B, down from KRW 5,124B in Q3 2023.

• Cost of goods sold ratio increased to 80.2% from 79.4% year-on-year; SG&A up 6.1% to KRW 4.9 trillion.

• Net income contributed KRW 3,206B to cash flow; significant outflows included asset acquisitions and dividends.

Outlook and guidance

• 2024 annual guidance maintained: 4%-5% sales growth and 8%-9% operating margin.

• Short-term profitability expected to be pressured by higher incentives and market uncertainties.

• Mid- to long-term operating margin target remains at 8%-9%.