Porsche AG achieved a significant increase in its sales revenue and operating profit in the first six months of 2022. These figures amounted to EUR 17.92 billion and EUR 3.48 billion, respectively. The return on sales in the first half of 2022 was 19.4% from 16.9% in the previous half. In the first six months of 2022, sales revenue stood at €16.53 billion and operating profit at €2.79 billion. These figures correspond to an increase in revenues by 8.5% and an increase in operating profits by 24.6%. Therefore, Porsche has once again been able to demonstrate its ability to operate successfully in a challenging environment. At the same time, the company is advancing its strategy for a sustainable future and redefining the concept of modern luxury.
“We are proud of the fact that we achieved significant growth in sales revenue and profits in this challenging market environment. This is a truly team effort by our company’s staff and management,” says Lutz Meschke, Vice President of of the Executive Board and Member of the Executive Board with responsibility for the areas of Finance and IT of Porsche AG. From January to June, Porsche delivered 145,860 vehicles to customers (corresponding period of the previous year: 153,656). The increase in sales performance to 19.4% in the first half of the year was the result of the impact of mainly a strong product mix, currency fluctuations and other business factors.
Given the company’s performance in the first half of 2022, Oliver Blume, Chairman of the Executive Board of Porsche AG, is optimistic about the future: “Porsche is synonymous with sport, modern luxury. Thus, we believe that we are well positioned in the favorable point of the automotive industry”. Expert studies predict an upward trend for luxury sports cars, fully electric vehicles and luxury SUVs in the coming years. “We think Porsche is very well positioned in each of these areas,” says Blume. “We believe we are ahead of other luxury vehicle manufacturers given our strong focus on sustainability. We take a holistic approach to sustainability, which is ecological, social and values-based. Our ambition is to be carbon neutral by 2030” .
The automotive sector’s net cash flow in the first half of 2022 amounted to €2.39 billion (previous year: €2.60 billion). “Despite the continued large investments in our future projects, we have again managed to achieve strong net cash flow in the automotive sector,” adds Lutz Meschke, Chief Financial Officer (CFO) of Porsche AG. “We believe our focus on cash flow pays off in this case.” Despite continued difficult conditions in the supply sector and increased raw material and energy prices, Porsche AG is targeting a sales return of between 17% and 18% in 2022 and sales revenue of between €38bn and €39bn. In the medium term, Porsche’s target for sales performance is around 17% to 19%.
The forecasts for 2022 are based on certain assumptions, such as, among others, no significant deterioration of economic conditions or the COVID-19 pandemic in Porsche’s main markets, the absence of significant disruptions in the supply chain especially with regard to semiconductors, energy and important parts and components, the absence of significant increases in raw materials and the non-escalation of the war in Ukraine. Porsche has the long-term ambition to achieve a Group-wide sales return of more than 20%: “The global economy is facing difficult conditions, but the current figures for the first half of 2022 give us confidence in our resilience,” says CFO Lutz Meschke.
Source: Capital
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