Investing.com -- Hyundai Motor (KS:005380) Company (OTC:HYMLF) reported a net profit of KRW 13.23 trillion in 2024, representing a 7.8% increase compared to the previous year
This growth in net profit came despite a 1.8% drop in global vehicle sales, which totaled 4.14 million units.
Hyundai (OTC:HYMTF) attributed its improved profitability to cost-cutting measures, streamlined sales processes, and a refined product lineup designed to better meet customer preferences in different markets.
Annual revenue rose by 7.7% to KRW 175.2 trillion, driven by strong demand for electrified vehicles and a diversified product portfolio.
Hyundai sold 757,191 electrified models globally during the year, an 8.9% increase from 2023. Electric vehicle sales accounted for 218,500 units, while hybrid sales reached 496,780 units.
Hyundai's success in the growing hybrid vehicle market and strong sales in North America contributed to revenue growth.
However, operating profit for the year decreased by 5.9% to KRW 14.24 trillion, with an operating profit margin of 8.1%.
The decline was attributed to higher sales warranty provisions, a weaker Korean won, and increased incentives provided to customers.
These challenges were reflected in the fourth-quarter results, where operating profit dropped 17.2% year-over-year to KRW 2.82 trillion.
Despite this, the company posted a quarterly net profit of KRW 2.47 trillion, a 12.3% increase compared to the same period in 2023, alongside a revenue surge of 11.9% to KRW 46.62 trillion.
Hyundai’s vehicle sales in its domestic market declined by 7.5% in 2024, while international sales were slightly down by 0.5%.
Supply chain disruptions, including heavy snowfall in Korea, and a slowdown in demand contributed to these figures.
In the fourth quarter alone, the company sold 1.06 million vehicles, representing a 2.2% decline from the previous year.
Despite the mixed operational results, Hyundai maintained its commitment to shareholder returns, announcing a year-end dividend of KRW 6,000 per common share. This brought the total dividend payout for the year to KRW 12,000 per share, a 5.3% increase from 2023.
The South Korean carmaker forecasted a 3-4% revenue growth in 2025, aiming for an operating profit margin of 7-8%.
The company projects global vehicle sales of 4.17 million units and has allocated KRW 16.9 trillion for investments, including capital expenditures, research and development, and strategic initiatives.