On the 25th, Hyundai Motor Company conducted a conference call on its business performance and announced that its sales for Q4 2023 reached 1,089,862 units on an IFRS consolidated basis, with revenue of 41.6692 trillion won (33.4622 trillion won from automotive and 8.207 trillion won from finance and others), an operating profit of 3.4078 trillion won, a recurring profit of 3.2581 trillion won, and a net profit of 2.2026 trillion won (including non-controlling interests).
Hyundai’s Q4 2023 sales increased compared year-over-year, supported by solid sales growth in major regions such as North America, Europe, and India. The operating profit expanded due to factors such as increased sales volumes and an improved mix focused on high-value models.
A Hyundai official stated regarding the Q4 results and future outlook, “While the sales growth trend continues with increasing demand in major markets, uncertainties in the operating environment due to high interest rates and other macroeconomic variables are emerging.”
In the global market, Hyundai sold 1,089,862 vehicles in Q4 2023. This represents a 4.9% increase compared to the same period last year. (※ Based on wholesale sales)
In South Korea, there was a positive response to the ‘All-New Santa Fe’ released last August, along with an expansion of sales focused on SUVs, where sales increased by 3.4% year-over-year to 198,558 units. Overseas, strong sales in key markets such as North America, Europe, and India, together with the introduction of new models and product enhancements of key lineups, led to a 5.3% increase in sales to 891,304 units compared to the same period last year.
Global sales of eco-friendly vehicles (including commercial) in Q4 2023 reached 173,297 units, recording a 27.7% increase from the prior year, attributed to the strengthening of the hybrid lineup and growth in the dedicated electric vehicle brand ‘Ioniq’. Of these, electric vehicles (EV) accounted for 57,975 units, while hybrids (HEV) accounted for 103,133 units. For the entire year of 2023, sales of eco-friendly vehicles increased by 37.2% compared to the previous year, totaling 695,382 units, including 268,785 EVs and 373,941 hybrids.
Sales revenue for Q4 2023 amounted to 41.6692 trillion won, an 8.3% increase compared to the previous year. Revenue growth was driven by an increase in sales volume and an improved regional mix focusing on advanced markets. The average exchange rate of the won against the dollar in Q4 2023 recorded 1,321 won, down 2.8% year-on-year.
The sales cost ratio for Q4 2023 stood at 80.0%, which is a 0.3 percentage point increase compared to the previous year. Selling and administrative expenses rose due to overall costs associated with increased sales compared to the same period last year.
The ratio of selling and administrative expenses relative to sales revenue reached 11.9%, which is 0.4 percentage points higher than the prior year.
As a result, the operating profit for Q4 2023 was reported at 3.4078 trillion won, a 0.2% increase from the same period last year, with an operating profit margin of 8.2%.
The recurring profit was 3.2581 trillion won, and the net profit reflecting the sale of its Russian plant in December last year was 2.2026 trillion won.
Meanwhile, the total cumulative sales for 2023 amounted to 4,216,898 units, without the influence of the Russian plant sale, reporting annual results of 162.6636 trillion won in revenue, 15.1269 trillion won in operating profit, 17.6187 trillion won in recurring profit, and 12.2723 trillion won in net profit.
Hyundai projects that macroeconomic uncertainties are expected to increase, primarily centered around emerging markets, leading to a prolonged difficult operating environment due to economic stagnation that is hard to predict. Additionally, fluctuations in exchange rates and rising sales-related costs due to intensified competition among manufacturers are anticipated to pose risks to operational activities.
Looking ahead, the global automobile market is expected to continue its strong growth in the eco-friendly vehicle segment, driven by stricter environmental regulations in key countries, increased investment in eco-friendly infrastructure, and growing consumer preference for eco-friendly vehicles.
In relation to this, Hyundai aims to enhance global recognition of its dedicated electric vehicle brand ‘Ioniq’, expand eco-friendly vehicle sales by continuously strengthening the hybrid lineup such as the ‘All-New Santa Fe’, maximize sales through production and sales optimization, and increase market share through mix improvements focused on SUVs and high-value models like the Tucson and G80.
Additionally, Hyundai has set its annual guidance for 2024, targeting a wholesale sales goal of 4.24 million units, a 0.6% increase from 2023’s sales. The goal for consolidated revenue growth rate compared to the previous year is set at 4.0% to 5.0%, while the consolidated operating profit margin target is between 8.0% and 9.0%. Despite the worsening external business environment, including global demand contraction and exchange rate volatility, Hyundai plans to pursue its goals through continuous mix improvements and cost innovations.
Hyundai also announced its investment plans for this year, stating it would invest a total of 12.4 trillion won, including 4.9 trillion won for R&D investment to increase production models, 5.6 trillion won for facility investment (CAPEX), and 1.9 trillion won for strategic investments to secure future technological capabilities.
Finally, reflecting robust performance, Hyundai has decided to set the year-end dividend for 2023 at 8,400 won per share. As a result, the total annual dividend for 2023, including the sum of mid-year dividends of 3,000 won (1,500 won for each of the two quarters), is set at 11,400 won per share, marking a 63% increase from the previous year. This is the largest dividend amount in history, in line with the ‘25% or more dividend payout ratio’ set in the three-year long-term shareholder return policy announced last year.
A Hyundai official stated, “We will actively review various shareholder return policies in the future and continue to strive to enhance shareholder value.”
Jin Lee daedusj@autodiary.kr