The Hyundai Motor Group affiliate reported a 10.6% increase in revenue, rising from KRW25.6trn in 2023 to KRW28.4trn in 2024. The operating profit grew by 12.8%, from KRW1.5trn to KRW1.7trn, with an operating margin of 6.1%.
Hyundai Glovis surpassed its record-high revenue of KRW26.9trn in 2022 but saw a slight decline to KRW25.6trn in 2023. During its 2024 Investor Day, the company outlined its medium- to long-term strategies, aiming to boost annual revenue to over KRW40trn ($29bn) by 2030 and increase operating profit to KRW3trn.
The logistics firm announced plans to invest KRW9trn over the next six years, starting from 2022, to achieve these goals. Specifically, Hyundai Glovis will allocate 36% to its logistics business, 30% to its shipping business, and 11% to its retail business. The remaining 23% will be directed toward new ventures, including used battery recycling and the development of smart logistics solutions.
“While managing our existing assets more efficiently, we will secure sustainable growth engines by investing KRW1.3trn every year in core assets,” Hyundai Glovis CEO Lee Kyoo-bok said. “We will also consider a way to grow through M&As.”
The acquisition of a 34.9% stake in Asiana Cargo, the airfreight division of Asiana Airlines, for $110m in 2024 underscores the company’s strategic shift. Hyundai Glovis believes this investment will enhance its competitive position in the aviation logistics sector, moving its focus away from traditional global logistics and ocean shipping services, while boosting its presence in both domestic and international markets.
In 2024, the Distribution segment was the key driver of total revenue, contributing KRW13.3trn, or 47% of the total revenue. In the shipping business segment, annual revenue increased by 21.6%, from KRW4.2trn in 2023 to KRW5.1trn in 2024. Despite a decline in domestic finished vehicle sales, a rise in overseas sales drove a 9.9% growth in the company’s logistics business segment, with revenue increasing from KRW9.0trn in 2023 to KRW9.9trn in 2024.
Moving forward, the company aims to reduce its dependence on other Hyundai Motor Group affiliates by targeting more customers outside the automotive group.
Author: Shruti Sasidharan
Source: Ti Insight
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