Porsche 2024 Annual Meeting Sweep. Dividend Doubled

Ken Zino of AutoInformed.com on Porsche Reveals New Macan EV at Singapore Art Week

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At the virtual Annual General Meeting of Porsche AG this week, the shareholders of Porsche AG unanimously accepted all the resolution proposals from management for all of the items on the agenda despite some vocal opposition about its electrification strategy, which is proceeding apace. In accordance with the dividend policy, ~€2.1 billion will be paid for the 2023 financial year. This is ~41% of the Group profit after tax, at €2.30 per share and €2.31 a preferred share. All 10 shareholder representatives on the Supervisory Board were re-elected for another term. At the constitutive meeting of the Supervisory Board following the AGM, Chairman of the Supervisory Board Dr Wolfgang Porsche and Deputy Chairwoman of the Supervisory Board Jordana Vogiatzi were unanimously re-elected.

“In 2023, Porsche impressed while realizing all its ambitious forecasts. Our financial position is robust and, even in uncertain times, we remain highly profitable. For Porsche, 2024 is a year of new product launches, with the biggest model launch program in the company’s history. In the past months we have launched new models for five model series. We are thereby laying the foundations today for our profits tomorrow – and for future dividends,” said Oliver Blume, Chairman of the Executive Board.

The Current Results

During 2023 Group sales were €40.5 billion, an increase of 7.7% (previous year: €37.6 billion). The Group operating profit increased by 7.6% to  €7.3 billion (€6.8 billion euros). The Group operating return on sales was stable at 18.%, “despite disruptions to global supply chains and exceptionally high investments in digitalization, the product and innovation portfolio, and the brand experience.” Net cash flow automotive was €4.0 billion ( €3.9 billion).

Problem or Ingenious Strategy?

Ken Zino of AutoInformed.com on Porsche 2024 Annual Meeting Sweep. Dividend Doubled

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“For Porsche, 2024 is a year of new product launches, with the biggest model launch program in the company’s history,” said Blume. “Having so many launches in such a short period is a complex task and a challenge for the company. We are currently gathering the momentum that will take us full speed ahead in 2025. We are laying the foundations today for our profits tomorrow – and for future dividends.”

The launch of the 2024 all-electric Macan SUV, Porsche’s long-standing bestseller, which outsold every Porsche last year except the larger Cayenne is a challenge. It will be an all-electric compact SUV in the largest and fastest growing segment in the EV world.

Porsche Macan at a Glance

The new Macan 4 and the Macan Turbo are  the  sports car manufacturer’s first all-electric SUV and is a completely new development with Porsche E-Performance. It has what’s claimed to be ample range for the long haul and high day-to-day use. The Macan 4 accelerates from a standstill to 100 km/h in 5.2 seconds, while the Macan Turbo takes just 3.3 seconds. The two models achieve top speeds of 220 and 260 km/h, respectively.

“Our aim is to offer the sportiest model in its segment with the all-electric Macan,” said Jörg Kerner, Vice President Product Line Macan at the press introduction in Singapore. “Porsche exclusively uses the latest generation of permanently-excited PSM electric motors on the front and rear axles to achieve excellent efficiency and enable optimum reproducibility of the power output. The numbers indicate top-class E-Performance: In combination with Launch Control, the Macan 4 produces up to 300 kW (408 PS, Macan 4: Electric power consumption combined (WLTP) 21.1 – 17.9 kWh/100 km; CO₂ emissions combined (WLTP) 0 g/km; Electric range combined (WLTP) 516 – 613 km; Electric range in town (WLTP) 665 – 784 km) of overboost power.

“The Macan Turbo has up to 470 kW (639 PS), Macan Turbo: Electric power consumption combined (WLTP) 20.7 – 18.8 kWh/100 km; CO₂ emissions combined (WLTP) 0 g/km; Electric range combined (WLTP) 518 – 591 km; Electric range in town (WLTP) 670 – 765 km). The maximum torque is 650 and 1130 Nm, respectively,” said Kerner.

Porsche Confirms Long-Term Forecast

Porsche had a decent start in the second quarter and said it “is pleased with how demand continues to develop in almost all regions. Only in China has the current demand for exclusive products remained subdued across all markets, both for consumer goods and for cars. Despite the prevailing challenging macroeconomic environment, Porsche AG stands by its forecasts, provided that the macroeconomic circumstances do not deteriorate significantly. For the whole of 2024, the company expects a Group operating return on sales in the 15 – 17% range. This projection is based on Group sales in the ~ €40 – 42 billion.”

“In the medium term, Porsche is standing by its forecast of a Group operating return on sales of ~17 – 19%. In the long term, the sports car manufacturer is aiming for a Group operating return on sales of more than 20%,” Porsche said.

The Wild Red Colored Card here is China of course. There is a growing trade war with Beijing in the U.S. and potentially other major markets. The European Union looks like it will levy higher tariffs on Chinese EVs, with an announcement due next week. China has already said it will retaliate.

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