Hyundai Motor announced results for the first quarter of 2022, with sales of 902,945 units in the first quarter of 2022, and based on IFRS, sales of KRW 30298.6 billion (KRW 2475 billion for automobiles and KRW 6,223.6 billion for finance and others), operating profit of KRW 1.92 trillion and net profit of KRW 1.77 trillion.
At the same time, Hyundai Motor Corporation decided to maintain the target of 13-14% year-on-year growth in consolidated sales and 5.5-6.5% operating margin of 5.5-6.5% for the year set out in the 2022 Annual Performance Guidelines. Hyundai Motor said: "Due to the rising price of raw materials and the overall impact of geopolitical risks, the second quarter is expected to be difficult, and Hyundai will do its best to achieve the guidelines announced at the beginning of the year." ”
Hyundai Motor sold 902,945 units in the global market in the first quarter of 2022 (January to March). This represents a 9.7% decrease compared to the same period last year.
In the Korean market, sales of 18.0% lower than 152,098 units, despite strong sales of Ioniq 5, Casper, G90 and Genises models, were strong. In overseas markets, despite the popularity of SUVs, production was interrupted due to semiconductor shortages, and sales in most markets except Europe were weak, down 7.8% year-on-year to 750,847 units.
Sales increased by 10.6% y/y to KRW 30,298.6 billion. Sales increased due to an improved sales mix, mainly geniseis and SUVs, as well as currency effects offsetting lower overall volumes. In the first quarter of 2022, the average exchange rate of the Korean won against the US dollar was 1,205 won, an increase of 8.2% year-on-year.
The cost of sales ratio was 80.9%, down 0.7 percentage points from the same period last year. Despite the decline in global wholesale sales, the decline was due to favorable exchange rates and improvements in the combination of high value-added models. Sales and administrative expenses as a percentage of sales were 12.7%, up 0.4 percentage points from the same period last year, mainly due to higher marketing and investment costs.
As a result, operating profit for the first quarter of 2022 was KRW 1.92 trillion, up 16.4% year-on-year. The operating margin was 6.4%.
In terms of looking forward to the future business environment, Hyundai Motor expects that the global epidemic will gradually stabilize and the semiconductor shortage will gradually stabilize, but the geopolitical impact of the continued imbalance between supply and demand of parts, the rise in raw material prices, the Conflict between Russia and Ukraine, etc. It is expected that with the increase of global uncertainty, the difficult business environment will continue in the future.
At the same time, Hyundai Motor predicts that the global new energy vehicle market will continue to grow rapidly, focusing on electric vehicles, due to the strengthening of environmental protection regulations in major countries, the increase in investment in environmental infrastructure and the increase in preference for new energy models.
In response, Hyundai Motor plans to maximize sales through production and sales optimization, expand market share and ensure profitability by optimizing the combination of high-value-added models, and strengthen its electric vehicle lineup by launching major new models such as the GV60 globally. This year, the launch of the GV70 electric model and Ioniq 6 will be the focus.