South Korean car and manufacturing logistics player Hyundai Glovis saw its operating profit fall by 13.6% y-o-y to KRW 1.55tn (€1.08bn) in the 2023 financial year on revenues down by 4.8% y-o-y to KRW 25.7tn (€17.92bn).
According to the company in the Logistics segment it saw increased domestic and overseas transport for finished cars. This was offset by decreased air and sea freight forwarding sales that came about due to the normalisation of the global market.
With regard shipping, Hyundai Glovis had ongoing problems with limited vessel availability and port congestion. The appreciation of its home currency the Won against the inflation experienced in international consumer markets also impacted sales.
For the Distribution division of the company, negative foreign exchange effects hit the car knockdown (KD) business. There was also a decrease in used car trading volumes.
Looking ahead, the company expects export volumes to grow for its Logistics division, particularly for the finished car business interest. The steel industry is to offer greater demand for the company’s services as global manufacturing demand increases. Emerging markets are set to add to this demand in 2024. The Distribution segment is set to face headwinds of high interest rates and weaker domestic consumer demand. In this segment, Hyundai Glovis is set to seek efficiencies in logistics to improve profitability.
Source: Hyundai Glovis
