Hankook Tire Announces Record Financial Results for 2023

Hankook, a premium tyre manufacturer, has unveiled its financial achievements for the year 2023, marking the company's best performance since its inception. Despite the challenges posed by the global economic climate, Hankook has reported a significant year-on-year increase in sales and operating profit, reinforcing its stature as a leading global tyre brand.

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Hankook Tire
Published on
February 8, 2024

Exceptional Growth Amid Economic Challenges

Hankook has announced remarkable sales of KRW 8,939.6 billion (approximately EUR 6,329.5 million) and an operating profit of KRW 1,327.9 billion (approximately EUR 940.1 million) for the year 2023. These figures represent a 6.5 percent increase in sales and an astounding 88.1 percent rise in operating profit compared to the previous year. The fourth quarter alone saw sales reaching KRW 2,232.0 billion (approximately EUR 1,570.2 million) and operating profit at KRW 492.4 billion (approximately EUR 346.4 million).

Guy Heywood, Vice President of Sales, Marketing and Business Strategy at Hankook Tire Europe GmbH, praised the achievements, highlighting the importance of maintaining pace in a logical direction and executing plans effectively. "To win when the going is tough is a sign that we are making progress in the right direction, so it's pleasing to see the results of our hard-won gains," Heywood remarked, applauding the efforts of the Hankook teams worldwide.

Strategic Moves and Premium Brand Strategy

The success of Hankook can be attributed to its premium brand strategy, proactive investment in research to adapt to future mobility trends, and the leadership of Chairman Hyunbum Cho. A significant part of its growth was driven by the expansion of its "iON" brand, the world's first full line-up of electric vehicle (EV)-exclusive tyres. This initiative, alongside the strengthening supply of tyres for supercars and global premium brands, and increasing sales of high-inch passenger car tyres (18 inches and above), has diversified and enhanced Hankook's high-value portfolio.

Despite decreases in the cost of raw materials such as synthetic rubber and carbon black, as well as in maritime freight costs, Hankook managed to maintain competitive prices, contributing to its performance improvements. The company's expansion in sales and line-up, especially with the introduction of iON to the global market, and its role as the exclusive technical partner and tyre supplier of the ABB FIA Formula E World Championship, underscores its leadership in the global EV tyre market.

A Bright Future Ahead

As Hankook continues to take everyday steps towards its goals, its record results for 2023 stand as a testament to its strategic direction and the collective efforts of its teams worldwide.

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