KG Mobility (KGM) announced on Feb. 22 that it posted sales of 116,699 units and 3.78 trillion won (US$2.84 billion), operating income of 5 billion won and net profit of 1.2 billion won based on an unconsolidated basis in 2023.
KGM said the results were driven by productivity improvements and cost reduction efforts to improve internal management and increased export volumes through an aggressive expansion into new overseas markets. It was the first time in 16 years since 2007 that the company posted a profit with net sales alone.
Last year, KGM’s sales totaled 110,699 units -- 63,345 units in the Korean market and 52,754 units in exports. Therefore, the automaker enjoyed an increase of 1.9 percent in sales year on year. Its revenue ascended by 10.4 percent year on year to 3.78 trillion won due to improvements in its product mix, among others. This was the highest annual sales since its establishment.
In particular, exports inflated 16.5 percent year on year, driving KGM’s overall sales growth. The carmaker’s sales were the highest in nine years since 2014 (72,001 units) driven by new model launches centered on the Torres and an aggressive expansion into new markets including Europe, Latin America, and the Asia Pacific region.
Since joining KG Group, KGM has been able to return to profitability with an operating profit of 5 billion won and a net profit of 1.2 billion won thanks to efforts made by all KGM employees to boost productivity and cut costs, and an increase in exports.
KGM, which has been in business for 70 years, plans to use this year as a year of a big takeoff and further accelerate its internal improvement including boosting its productivity. KGM will also focus on expanding its global sales by establishing brands in the domestic and overseas markets, developing new products such as electric pickup trucks, exploring new markets, and strengthening its complete knock-down business.
“KGM has succeeded in making a turnaround in just over a year since it started anew as a KG Group affiliate,” said Chung Yong-won, CEO of KGM. “This year, KGM will transform into a company that achieves sustainable growth.”