Nexen Tire reports increased revenue, income for 2023

Nexen Tire returned to the black in 2023 with a net income of KRW 110.6 billion (£67.0 million). This result contrasts with the net loss of KRW 27.5 billion recorded a year earlier. Revenue for 2023 amounted to KRW 2,701.1 billion (£1.6 billion), a year-on-year increase of 4.0 per cent. EBITDA rose 173.3 per cent year-on-year, to KRW 388.7 billion (£235.6 million), with a margin of 14.4 per cent.

Looking at Q4 2023, revenue declined 3.4 per cent year-on-year, to KRW 678.1 billion (£411.1 million), and operating profit was down 8.3 per cent year-on-year, to KRW 63.9 billion (£38.7 million). Net profit amounted to KRW 18.0 billion (£10.9 million). EBITDA was KRW 117.0 billion (£70.9 million), with a margin of 17.3 per cent.

Nexen Tire held capacities to produce 45 million tyres in 2023, including 5.5 million tyres at its plant in Czechia. With the second phase of expansion at the Zatec site completed and production commencing in 2024, Nexen expects annual production capacity in Czechia to reach 11.0 million tyres in 2025, contributing to total production capacities of 52 million tyres a year. Additional capacity 1.5 million tyres a year at plants in South Korea will also contribute to this growth in overall capacity.

Growth in Europe

Europe was by far the largest region for sales, accounting for 37 per cent of Nexen Tire’s overall sales. A further 27 per cent of sales took place in USA and Canada and 17 per cent in South Korea. Other markets accounted for the remaining 19 per cent.

Sales in Europe during 2023 rose 6.0 per cent year-on-year, to KRW 1,005 billion (£609.3 million), with 18-inch and larger rim diameter tyres accounting for 21.9 per cent of revenue (up from 21.1% in 2022). Sales for Q4 2023 were up 8.2% year-on-year, to KRW 264 billion (£160.4 million).