Hyundai Motor Announces 2022 4th Quarter Business Results
- 2022 annual vehicle sales increased 1.3% to 3.94 million units
- Annual revenue was up 21.2% to KRW 142.5 trillion
- Operating profit jumped 47% to KRW 9.82 trillion
- Net profit climbed 40% to KRW 7.98 trillion
- Increased sales volume, enhanced product mix and favorable exchange rate helped company achieve solid results
- Q4 2022 sales volume stood at 1.04 million units, up 8.1% year over year
- Revenue increased 24.2% Y/y to KRW 38.52 trillion
- Operating profit more than doubled to KRW 3.36 trillion from KRW 1.53 trillion a year ago; Q4 operating profit margin was 8.7%
- Q4 net profit reached KRW 1.71 trillion vs KRW 701.4 billion a year ago
- Hyundai raised the 2022 year-end dividend by 50% to KRW 6,000
- Hyundai to cancel its treasury stocks account for 1% of total issued shares
- Hyundai offered 2023 consolidated financial guidance for transparent communication with markets
- Company targets annual revenue growth of 10.5~11.5% from 2022 on consolidated basis; consolidated operating profit margin around 6.5~7.5%
- 2023 total investment forecast at KRW 10.5 trillion
SEOUL, January 26, 2023 – Hyundai Motor Company today announced its 2022 annual and fourth quarter business results. Last year, the company sold 3,942,925 vehicles worldwide, up 1.3 percent from 2021. Annual revenue increased 21.2 percent to KRW 142.5 trillion.
Annual operating profit climbed 47 percent to KRW 9.82 trillion with 6.9 percent of operating profit margin. Net profit recorded KRW 7.98 trillion, up more than 40 percent year over year.
In 2022, Hyundai was able to achieve strong business results due to increased sales for SUVs and Genesis luxury brand models as well as a favorable exchange environment.
In the fourth quarter of 2022, Hyundai sold 1,038,874 units around the globe. Sales in markets outside of Korea were up by 9.3 percent to 846,825 units as the global component shortage gradually recovered. Sales in Korea increased 3.3 percent to 192,049 units, fueled by strong demand for the seventh-generation Grandeur sedan as well as Genesis lineups.
The fourth-quarter revenue increased 24.2 percent year-over-year to KRW 38.52 trillion. Hyundai’s operating profit in the period climbed nearly 120 percent from a year earlier to KRW 3.36 trillion, with the operating profit margin finishing at 8.7 percent. Also, the company recorded a net profit (including non-controlling interest) of KRW 1.71 trillion, up 144 percent year-over-year.
Despite market uncertainties, such as rate fluctuation and ongoing supply issues, the company optimized its production at global plants as the component shortage issue gradually improved.
Hyundai will pay a year-end dividend of KRW 6,000 per common share, up 50 percent from 2021. The company will pay a total of KRW 7,000 per common share for 2022, including the interim dividend of KRW 1,000.
In addition, the company has decided to cancel its treasury shares account for 1 percent of total issued shares to strengthen the shareholder values. The company will continue to consider shareholder return policies to further enhance the values.
2023 Guidance and Outlook
Hyundai Motor shared financial guidance with markets to enhance transparent communication. In 2023, the company is targeting 10.5~11.5 percent of consolidated revenue growth and 6.5~7.5 percent annual consolidated operating profit margin. The company aims for total vehicle sales of over 4.32 million units this year.
The company plans to expand its investment total of KRW 10.5 trillion, including KRW 5.6 trillion in capital expenditure, KRW 4.2 trillion in research and development, and KRW 700 billion in strategic investments.
Hyundai Motor anticipates several uncertainties around the world, such as ongoing component shortages, inflation and fluctuation of interest rates. However, the company will continue to secure growth momentum by optimizing production and launching new SUV models this year, including the all-new KONA and all-new Santa Fe.
The company will also launch the all-new KONA EV and IONIQ 5 N this year to solidify its EV leadership. In addition, the company expects IONIQ 6, which will be rolled out in various global markets this year, to further expand its EV sales.
Despite the adverse and uncertain business environment, Hyundai Motor will also focus on enhancing its product mix with SUVs and luxury Genesis models while securing profitability based on optimized production and maximizing sales to become a leader in the future mobility industry.
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About Hyundai Motor Company
Established in 1967, Hyundai Motor Company offers a range of world-class vehicles and mobility services in more than 200 countries. Hyundai Motor sold more than 4.4 million vehicles globally in 2019, and currently employs some 120,000 personnel worldwide. The company is enhancing its product lineup with vehicles designed to help usher in a more sustainable future, while offering innovative solutions to real-world mobility challenges. Through the process Hyundai aims to facilitate ‘Progress for Humanity’ with smart mobility solutions that vitalize connections between people and provide quality time to its customers.