Kia announces 2021 fourth-quarter business results

• 2021 revenue increases 18.1% to KRW 69.86 trillion while operating profit jumps to KRW 5.07 trillion
• Annual global sales of 2.78 million units, 6.5 % increase Y/y
• 4Q revenue increases 1.6% and operating profit decreases 8.3% Y/y with global sales of 647,949 units, a 12.8% decrease Y/y
• Kia targets total global sales of 3.15 million units in 2022
• Financially, Kia aims for revenue of KRW 83.1 trillion, operating profit of KRW 6.5 trillion, and operating profit margin of 7.8% in 2022
• The company aims to enhance product mix and profitability while focusing on the sales of eco-friendly models such as EV6 and Niro

Kia today announced its 2021 fourth-quarter and annual business results. For 2021, Kia’s global sales reached 2.78 million units, a 6.5% increase from a year earlier. The annual revenue recorded KRW 69.86 trillion and operating profit was KRW 5.07 trillion, each increasing 18.1% and 145.1% respectively year over year.

In the fourth quarter of 2021, Kia reported global sales of 647,949 units, a 12.8 percent decrease from the same period last year. Sales in Korea decreased 4.2 percent to 131,668 units. Sales outside of Korea also experienced a 14.7 percent decrease to 516,281 units.

The decrease in quarterly sales stems from the ongoing semiconductor shortage which has led to supply disruption coupled with the effects of the COVID-19 pandemic which continues to negatively impact economies around the globe and slow demand.

The fourth quarter revenue recorded KRW 17.19 trillion, an increase of 1.6 percent compared to the year earlier. The quarterly operating profit decreased 8.3 percent to KRW 1.18 trillion, while the quarterly net profit increased to KRW 1.25 trillion – up 29.7 percent year over year.

Kia showed a strong full-year performance, with annual revenue of KRW 69.86 trillion and operating profit of KRW 5.07 trillion. This was achieved with an improved product mix and robust sales of SUV models and new products, including eco-friendly models. Based on such a solid performance, the operating profit increased 145.1 percent with an operating profit margin of 7.3 percent.

In line with its shareholder friendly policies, Kia is planning to pay a year-end dividend of KRW 3,000 per share from KRW 1,000 per share a year earlier. The plan is subject to approval at the annual general meeting of shareholders scheduled to take place in March.

2022 Outlook

In 2022, Kia will continue to accelerate its electrification efforts and its transition to sustainable mobility solutions provider through introducing innovative mobility products and services.

Kia is aiming for global sales of 3.15 million units in 2022, a 13.5 percent increase compared to 2021. Kia plans to further increase sales in key markets while enhancing profitability with SUVs and other new models.

The EV6, Kia’s first dedicated BEV model, will be launched in the U.S. market in the first quarter. Along with EV6, Kia will focus on global sales of eco-friendly models such as the all-new Niro to create strong sales momentum going forward.

Financially, Kia aims to achieve revenue of KRW 83.1 trillion, operating profit of KRW 6.5 trillion, and operating profit margin of 7.8% this year.

(Revenue / Operating Profit / Net Profit unit: Billion KRW)

* 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 (https://www.kia.com/worldwide/main.do)

Presentation material is available for download on the Company IR website – IR Calendar (https://pr.kia.com/en/company/ir/ir-library/business-results.do)

Keyword: Kia announces 2021 fourth-quarter business results