Porsche 2023 H1 Sales and Profit Increase

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Porsche AG said today in Stuttgart that during the first half-year of 2023 Group sales revenue as well as Group operating profit increased. Sales revenues rose by 14% to €20.43 billion. Operating profit rose by 10.7% to €3.85. The Group operating return on sales ended the first half-year at 18.9% in the upper range of the previous guidance of 17%-19%.

However, automotive net cash flow declined to €2.22 billion (previous year: €2.39 billion) attributed to extensive investment in products and innovations. Because of increased investment activity in ongoing operations and “temporarily” higher inventory, the net cash flow margin for the automotive segment came in at 11.7% (previous 14.5%). Deliveries to customers rose by 14.7% to 167,354 cars in the first six months of 2023.

“Once again we have posted successful figures while investing extensively in our future at the same time. This demonstrates our uncompromising commitment to our strategy. The feedback from our customers and our results demonstrate that we’re on the right track,” said CEO Oliver Blume.

Porsche Financial Services (PFS) continued its growth in the first six months of the year: sales revenue rose to €1.65 billion euros (previous €1.62 billion). PFS’s operating profit declined to €147 million (€216 million ). The decrease was largely due to the measurement of interest rate hedges as well as lower releases in the area of loan loss provisions, Porsche said.

“The global economic situation remains tense,” said CFO Lutz Meschke. “Efforts to secure supply chains and parts availability, general rising costs and various geopolitical tensions continue to pose challenges for Porsche AG.

“Nevertheless, Porsche confirms its forecast for the full year of 2023, provided that the global economic and supply chain situation does not worsen significantly. At the end of the full year 2023, Porsche expects a Group operating return on sales in the range of 17% to 19%. This forecast includes assumed Group sales revenues ranging from €40 to 42 billion euros.

“Despite the global challenges, we are investing extensively in our development, in innovations and the entire Porsche ecosystem for future products and services. We are resolute in our endeavor to move ahead with our strategy of modern sporty luxury,” Meschke concluded.