Model Group Core Boosts Returns and Revenue in First Half 2023 – Centered on Higher Quantity Profitability

The clearest affirmation of the speedy success of this course over current months is the working consequence earlier than particular objects; at EUR 3.77 billion (H1 2022: EUR 2.65 billion), the Model Group Core posted a 42.5 % improve over the identical interval within the earlier 12 months.

The working return on gross sales earlier than particular objects additionally rose – from 5.0 % within the first half of the earlier 12 months to five.5 %. Consolidated gross sales income climbed 30 % to EUR 68.76 billion (H1 2022: EUR 53.01 billion), whereas web money move elevated to EUR 2.56 billion (H1 2022: EUR 1.75 billion; +46.4 %). The rise in earnings is attributable not solely to synergies and scaling results, but in addition to pricing measures from 2022 that offset bills in reference to larger commodity costs and the deconsolidation of Russian corporations.

Unit gross sales by the Model Group Core grew 25 % within the first half of 2023 from 1.96 million autos in the identical interval of the earlier 12 months to 2.45 million in 2023. The Model Group Core additionally reported noticeable progress in automobile deliveries in contrast with a weaker prior-year interval. In complete, 3.12 million autos have been handed over to prospects within the first six months. That’s 11.6 % greater than within the first half of 2022. The rise was significantly robust within the BEV phase: a complete of 227,300 electrical autos have been delivered – a rise of 54.1 % (147,500 autos).

“The Model Group Core’s stable growth within the first half of 2023 exhibits we’re heading in the right direction with our deal with extra effectivity and profitability. However we have now in no way crossed the ending line but. In a particularly demanding setting, we should proceed to accentuate our cooperation and systematically leverage all synergy potential. The person manufacturers, the model group and the Volkswagen Group all profit from that. Above all, although, it’s our prospects who profit, as a result of this lays the muse for our robust funding in improvements and applied sciences and permits us to proceed to supply autos which are superior to these of the competitors going ahead. The Model Group Core nonetheless has loads of potential. It’s a key ingredient of Group steering, each now and sooner or later,” Thomas Schäfer, Member of the Volkswagen Group Board of Administration accountable for the Model Group Core, mentioned.

Key figures for the Model Group Core:

General, the Model Group Core’s half-yearly outcomes are as a result of systematic growth of the person manufacturers Volkswagen, ŠKODA, SEAT/CUPRA and Volkswagen Industrial Automobiles.

Within the first half of 2023, the Volkswagen model grew unit gross sales by 25 % from 1.22 million autos in the identical interval final 12 months to 1.52 million autos in 2023. Larger product prices and a particular cost in reference to Russia had a detrimental impression on the working revenue earlier than particular objects that ran at EUR 1.64 billion, in contrast with EUR 1.86 billion for a similar interval in 2022. Gross sales income elevated from EUR 33.32 billion within the first half of 2022 to EUR 42.95 billion in the identical interval in 2023. The working return on gross sales earlier than particular objects got here in at 3.8 % within the first half of 2023, 1.8 proportion factors down on the identical interval in 2022.

ŠKODA Auto reported a robust first half-year, and delivered 432,173 autos to prospects worldwide (+19.9 %). The corporate generated gross sales income of EUR 13.75 billion, a rise of 34.5 % over the comparable interval in 2022. The working revenue earlier than particular objects elevated by 34.8 % to EUR 911 million. The return on gross sales got here in at 6.6 %, and was subsequently on the identical stable stage because the earlier 12 months, although a particular cost in reference to the termination of enterprise in Russia had an impression on the monetary consequence.

SEAT/CUPRA reported unit gross sales of 317,395 autos, a robust rise of 35 %. The corporate recorded its finest half 12 months ever. Working revenue for the primary half of the 12 months amounted to EUR 371 million, EUR 486 million larger than the identical interval in 2022. The return on gross sales in H1 rose to five.0 %. Gross sales income elevated to EUR 7.41 billion, 37.8 % larger than the primary half of 2022.

Volkswagen Industrial Automobiles (VWN) continued the constructive enterprise growth of 2022 within the first half of 2023. Unit gross sales elevated by 38 % to 211,747 autos. Gross sales income rose 47 % to only in need of EUR 7.42 billion. Working revenue earlier than particular objects grew to EUR 448 million within the first half of the 12 months, in contrast with EUR 187 million within the first six months of the earlier 12 months. Because of this, the return on gross sales elevated from 3.7 % within the first half of 2022 to six.0 % in H1 2023.

Outlook

In step with the steering mannequin offered on the current Capital Markets Day, the Model Group Core will proceed to deal with assembly the targets for profitability and effectivity will increase within the second half of this 12 months. Constructing on the successes of the primary six months, the model group is aiming for a better return on gross sales for 2023 than in 2022 (3.5 %) an.

Patrik Andreas Mayer, CFO of the Volkswagen model and accountable for Finance on the Model Group Core, mentioned: “In a difficult market setting we’ll proceed to enhance the competitiveness of the Model Group Core with the efficiency applications launched in any respect manufacturers, and transfer the Volkswagen Group in the direction of extra profitability and long-term success via economies of scale and synergies.”

In these efforts, the Model Group Core will profit from the improved availability of elements, together with semiconductors. On the identical time, the person manufacturers will reply to the continuing challenges offered by e-mobility and vitality provide with value-oriented manufacturing, strict price self-discipline and the identification and harnessing of synergies.

Together with deliberate progress and positive aspects in market share, these measures will assist generate additional momentum for the Model Group Core within the coming years and meet the long-term goal of a consolidated return on gross sales of 8 %.