- 1Q revenue increased 10.6% Y/y to KRW 30.3 trillion
- Operating profit up 16.4% to KRW 1.93 trillion; operating profit margin record 6.4%
- Net profit rose 16.8% Y/y to KRW 1.78 trillion
- Company sold 902,945 units from January to March, affected by chip and components shortages worldwide
- Hyundai Motor to secure profitability through various measures despite unfavorable industry conditions, including disruption in the supply chain and fluctuations in raw material costs
Hyundai Motor Company today announced its business results for the first quarter of 2022. The first-quarter revenue and operating profit increased 10.6 percent and 16.8 percent year-over-year to KRW 30.3 trillion and 1.93 trillion.
During the period, the operating profit margin finished at 6.4 percent, and net profit (including non-controlling interest) was up 16.8 percent to KRW 1.78 trillion, paving the way for achieving its annual guidance for 2022.
Hyundai sold 902,945 units around the globe in the January–March period, a 9.7 percent decrease from the year earlier. Sales in markets outside of Korea were down by 7.8 percent to 750,847 units, and sales in Korea decreased 18 percent to 152,098 units. The decrease in sales volume mainly stemmed from the chip and component shortage hit worldwide.
Robust sales of SUV and Genesis luxury models, declining incentives, and favorable foreign exchange environment helped lift revenue in the first quarter despite the slowdown in sales volume amid an adverse economic environment.
The company maintains its financial guidance set this January for 13~14 percent of consolidated revenue growth and 5.5~6.5 percent annual consolidated operating profit margin.
Hyundai to secure high profitability as well as eco-friendly leadership
Going forward, Hyundai Motor expects a gradual recovery from the global pandemic and the chip shortage. However, the company also anticipates external uncertainties to continue based on the supply chain disruption caused by the lockdown in several cities in China and fluctuation in raw material costs due to geopolitical issues.
In order to cope with the uncertainties, the company will focus on the recovery of sales through an optimized production plan in global operations that will enhance its product mix with SUVs and luxury models to secure robust profitability.
In addition, Hyundai will continue to strengthen its global leadership position in eco-friendly EVs, such as the world car of the year-winning IONIQ 5, by launching more new battery electric vehicles, including Genesis’ GV60 and Electrified GV70 and Hyundai IONIQ 6, in markets around the world.