Kia announced its 2020 Q4 business results, reporting a 5 percent year-on-year rise in quarterly revenue to KRW 16.91 trillion.
During the October-December period, Kia sold 742,695 units across global markets, a slight decrease from 742,733 units compared to the same period last year. Sales in Korea decreased 5.2 percent to 137,389 units, due to the ongoing challenges presented by the Covid-19 pandemic and product disruptions. Sales outside of Korea climbed 1.2 percent to 605,306 with strong recovery in the U.S, alongside significant growth in India.
The company’s fourth-quarter operating profit more than doubled from a year earlier to KRW 1.28 trillion, with an operating profit margin at 7.6%. The company’s net profit also increased to KRW 976.8 billion, up 182 percent during the same period.
The strong Q4 performance was supported by Kia’s enhanced global product mix and ongoing success of the brand’s high-margin RV models, including Telluride, Seltos, and Sorento SUVs and the Carnival minivan. Sales of Kia’s RV models accounted for 58.7 percent of the total sales volume, the highest RV share ever and leading overall profit growth.
For full-year 2020, Kia’s revenue rose 1.8 percent to KRW 59.17 trillion from KRW 58.15 trillion in 2019, while operating profit advanced 2.8 percent to KRW 2.1 trillion, up from KRW 2 trillion. Net profit decreased by 17.7 percent to KRW 1.5 trillion.
Full-year global sales volume decreased 7.6 percent from 2019 to 2.61 million units, with 552,400 units sold in Korea and 2.05 million across the rest of the world.
For 2021, Kia is targeting global sales of 2.92 million units, a 12.1 percent increase compared to 2020 global sales volume. The company is targeting sales in Korea of 535,000 units and 2.39 million units for sales outside of Korea. Kia will continue to enhance its product lineup with new models, including the launch of its first dedicated battery electric vehicle model.
Kia’s board of directors today approved a plan to pay a year-end dividend of KRW 1,000 per share. The company is seeking to balance new investment needs and shareholder returns alongside its mid to long-term commitment to enhance shareholder-friendly policies.