- 2Q revenue increased 38.7% Y/y to KRW 30.33 trillion
- 2Q global sales volume rose 46.5% Y/y to 1,031,349 units
- 2Q operating profit reached KRW 1.89 trillion; net profit increased to 1.98 trillion
- Hyundai Motor to pay an interim dividend of KRW 1,000 per common share
- Company to continue taking steps to cope with unfavorable industry conditions, including a chip supply shortage and fluctuation in raw material prices
Hyundai Motor Company today announced its business results for the second quarter of 2021. Its revenue increased 38.7 percent year-over-year to KRW 30.33 trillion.
The company sold 1,031,349 units around the globe in the April-June period, a 46.5 percent increase from a year earlier. Sales in markets outside of Korea increased by 73.6 percent to 830,667 units, led by the recovery of automotive demand in most markets around the world. Sales in Korea decreased 11 percent to 200,682 units.
Hyundai Motor’s operating profit in the period rose to KRW 1.89 trillion from KRW 590.3 billion in the second quarter of 2020, when the COVID-19 pandemic stifled profitability. The operating profit margin represented 6.2 percent.
Net profit, including non-controlling interest, increased to KRW 1.98 trillion, compared to KRW 377.3 billion in the same period of last year.
Hyundai Motor’s board today approved a plan to pay an interim dividend of KRW 1,000 per common share – the same level as in 2019.
Sales of SUV models and Genesis luxury brand models drove the momentum in sales volume and declining incentives helped lift revenue and profitability in the second quarter as the ongoing recovery from the global COVID-19 pandemic spurred automotive demand.
Proactive measures underway
Hyundai Motor expects that on-year sales growth might slow down in the rest of this year amid adverse business conditions caused by the COVID-19 pandemic resurgence, as well as the unstable supply of semiconductor chips, raw material price fluctuations, and unfavorable exchange rates. However, the company will continue to proactively cope with these issues.
Regarding the global chip shortage, Hyundai Motor expects the situation to gradually improve in the second half of the year. The company plans to bolster its component inventory with sufficient orders for a year, secure additional supplies and strengthen cooperation with various semiconductor partners.
Hyundai Motor will proactively expand local components production, diversify its supply chain, preemptively manage inventory, and continuously look for alternative chip parts to prevent a components shortage.
Hyundai Motor will also continue to enhance its product mix with more SUVs and luxury models, while improving profitability despite the tough business environment.
The company plans to continue its endeavor to become the leader of the electrification era while responding to global environmental regulations with its first dedicated battery electric vehicle (BEV), IONIQ 5, and the first dedicated BEV model of Genesis brand.