Hyundai Motor Announces 2023 Q1 Business Results
- Q1 revenue increased 24.7% Y/y to KRW 37.78 trillion
- Operating profit up 86.3% to record-high KRW 3.59 trillion; operating profit margin hit 9.5%
- Q1 net profit rose 92.4% Y/y to KRW 3.42 trillion
- The company sold 1,021,712 units during the first quarter, up 13.2% Y/y, buoyed by gradual improvement of component shortage
- Sales of full electric models jumped 48% Y/y to nearly 66,000 units
- Hyundai Motor to enhance its corporate value through proactive and mid- to long-term shareholder return policy
- To set a fresh dividend policy; to pay 25% or above of consolidated net income attributable to controlling interests
- To pay quarterly dividend versus half-annual previously as it aims to reduce share price fluctuation and to compensate long-term shareholders
- Hyundai Motor to cancel 1% of its existing treasury stock a year over the next three years
- Hyundai Motor to enhance profitability through various measures despite global uncertainties, including fluctuations in interest rates and raw material costs
SEOUL, April 25, 2023 – Hyundai Motor Company today announced its business results for the first quarter of 2023. The first-quarter revenue increased 24.7 percent year-over-year to KRW 37.78 trillion, and operating profit rose 86.3 percent year-over-year to quarterly record KRW 3.59 trillion.
During the January-March period, Hyundai Motor recorded operating profit margin of 9.5 percent. Its net profit (including non-controlling interest) also was up 92.4 percent to KRW 3.42 trillion, paving the way for the company to meet its annual guidance for 2023.
Hyundai Motor sold 1,021,712 units around the globe in the January–March period, a 13.2 percent increase from a year earlier. Sales in markets outside of Korea were up by 10.7 percent to 830,665 units, and sales in Korea increased 25.6 percent to 191,047 units. The strong sales mainly stemmed from the improvement of production as chip and component supplies stabilized worldwide.
The overall sales increase, especially for SUV and Genesis luxury models, as well as favorable exchange rates, helped lift revenue in the first quarter despite the adverse economic environment. Hyundai Motor also sold nearly 66,000 units of electric vehicle (EV) models in the period, an increase of 48 percent from a year earlier.
Hyundai to maximize shareholder value through shareholder-friendly policies
Hyundai Motor announced a mid- to long-term shareholder return policy.
The company announced its new divided policy. Hyundai Motor now sets the dividend payout ratio to 25 percent or higher of its consolidated net profit attributable to controlling interest. That compares with the previous dividend policy that was based on free cash flow. It plans to pay dividends quarterly, increased from twice a year previously.
In addition, Hyundai Motor announced a plan to cancel 1 percent of its existing treasury stock every year over the next three years. The company aims to maximize shareholder value and lift corporate value that meets market expectations with the new plans and policies.
Hyundai to secure high profitability as well as EV leadership
Hyundai Motor aims to secure robust profitability and achieve its annual guidance through increased sales, enhanced product mix with more SUVs and luxury models, and production rate recovery, despite persistent external factors, such as expanding inflation and fluctuation of raw material costs and interest rates due to geopolitical issues.
The company will continue to strengthen its global leadership position in eco-friendly EVs by growing sales of its World Car of the Year-winning IONIQ 6 and IONIQ 5 and launching more models, including Hyundai Kona EV, Genesis’ GV60, Electrified G80, and Electrified GV70 in markets around the world.
This year, Hyundai Motor will also launch IONIQ 5 N, its first high-performance EV model, to further solidify its global EV leadership. In addition, IONIQ 6 will be introduced in more diverse markets around the globe.
* Net Profit includes non-controlling interest
* Under K-IFRS
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About Hyundai Motor Company
Established in 1967, Hyundai Motor Company is present in over 200 countries with more than 120,000 employees dedicated to tackling real-world mobility challenges around the globe. Based on the brand vision ‘Progress for Humanity,' Hyundai Motor is accelerating its transformation into a Smart Mobility Solution Provider. The company invests in advanced technologies such as robotics and Advanced Air Mobility (AAM) to bring about revolutionary mobility solutions, while pursuing open innovation to introduce future mobility services. In pursuit of sustainable future for the world, Hyundai will continue its efforts to introduce zero emission vehicles equipped with industry-leading hydrogen fuel cell and EV technologies.