Hyundai Motor achieved a 21.9 percent year-on-year jump in operating profit during the fourth quarter of 2021 on the back of improving product mix and the favorable effects of foreign currencies.
Hyundai Motor announced its business performance for the quarter in a business conference call at Hyundai Motor headquarters in Seoul on Jan. 25.
In an IFRS consolidated financial statement, Hyundai Motor sold 966,639 units and posted 31,026.5 billion won in sales, 1,529.7 billion won in operating profit, 1,474.3 billion won in ordinary profit and 701.4 billion won in net profit (including non-controlling interest).
The automaker’s 2021 Q4 total sales accounted for 25,190.8 billion won in car sales and 5,835.7 billion won in the financial sector and others.
As of the 2021 Q4 performances, a Hyundai Motor official said, “Global car sales had declined over the same period of the previous year in the wake of the effects of the protracted shortage of global vehicle chips, but operating profit rose year-on-year on the back of the improving product mix and favorable effects of foreign currencies despite declining car sales.”
Influenced by the protracted shortage of global semiconductor supplies, a stockpile of cars in major markets dropped to lower levels, and the semiconductor supply situation began to improve last December, but a shortage of some chip items was predicted to continued in the first quarter of this year and to turn back to normal in the second quarter, the official said.
Hyundai Motor sold 96,0639 units on the global market during the period between October and December of last year, a 15.7 percent year-on-year decline.
In Korea, Hyundai Motor saw sales of new cars such as IONIQ 5, Casper and Genesis GV70 show signs of rise but sold 185,996 units due to the continued chip supply shortage.
Hyundai Motor sold 774,643 units abroad, a 17.2 percent year-on-year plunge, as the automaker saw sales in most overseas markets decline in the wake of production disruption, caused by the shortage of semiconductor supplies. The value of sales in 2021 SQ4 came to 31,026.5 billion won, a 6.1 percent year-on-year rise. The automaker saw sales rise as the improving product mix offset overall car sale decline.
Cost of sales in 2021 Q4 declined 0.7 percentage points to 80.9 percent the declining cost of sales was owed to the improving product mix with a focus on the portion of value-added cars and the favorable effects of foreign currencies.
The average won exchange rate per dollar in 2021 Q4 stood a 5.9 percent year-on-year rise to 1,183.
The portion of sale and management costs out of sales came a 0.1 percentage point rise to 14.2 percent due to rising R&D costs for future investment.
Subsequently, Hyundai Motor saw 2021 Q4 operating profit surge 21.9 percent year-on-year to 1,529.7 billion won. Operating margin for 2021 Q4 came to 4.9 percent.
The automaker chalked up 1,474.3 billion won and 701.4 billion won in ordinary profit and net profit, respectively.
As for the business performance for the whole of last year, Hyundai Motor sold 3,890,726 units and posted 117,610.6 billion won in sales and 6,678.9 billion won in operating profit.
The global eco-friendly car market is forecast to maintain a higher growth rate with a focus on EVs on the back of major countries’ stringent environmental restrictions and rising investment into eco-friendly infrastructure and rising preference to eco-friendly cars, the Hyundai Motor official said.
Hyundai Motor established a plan calling for selling 4,323,000 units this year — sell 732,000 units in Korea and 3,591,000 units abroad.
To this end, the automaker plans to ramp up EV lineups such as GV60, GV70 electrification models, the release of IONIQ 6, max out sales through optimized production and sale and improving product mix with a focus on the sale of valued-added cars and protecting profitability.
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