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The German carmaker announced on Monday record profits and revenues in 2022, thanks to increased car deliveries and cost reductions. In 2023, it expects sales of 42 billion euros, up 12% from 2021.
This Monday, Porsche AG lifted the veil on record profits and revenues in 2022. The luxury car brand has posted a 27.4% increase in annual profit, to 6.8 billion euros, for a 13% increase in sales to 37.6 billion euros. A good performance, but still slightly below the forecasts of analysts from Refinitiv, a provider of data and infrastructure to the financial markets, who were expecting a profit of 6.86 billion euros and a turnover of 38.3 billion euros.
Deliveries, meanwhile, rose 2.6 percent to nearly 310,000 cars.
“The keys to our success are better price positioning, a strong product range, increased group sales, currency effects and, last but not least, consistent cost discipline”, said Lutz Meschke, the brand’s CFO.
In addition to the good results, Meschke said supply chain issues, geopolitical tensions and rising inflation still pose a challenge for the automotive industry.
Road to 20 program
The company is targeting an increase in revenue to €40-42 billion this year and a margin of 17-19%. In 2023, the company is launching its Road to 20 program, which aims for a group operating profitability of more than 20 percent over the long term.
“With the Road to 20 program, we are making Porsche even more resilient and our brand stronger than ever”, Meschke said. “We will turn everything around, from our product range and pricing to our cost structure. We want to improve the quality of our contribution margins and make our products even more attractive.”
The Road to 20 program is a continuation of the 2025 profitability program, which helped Porsche to better withstand the crises of previous years.
Porsche’s growth prospects are in line with those of its competitors, such as Ferrari, Aston Martin and Volkswagen. All of them have promised stronger results in 2023, after complicated years.
Increasing the share of electric cars
In order to get more into this profitability dynamic, Porsche wants to increase its production of electric cars, but not without neglecting its sales of synthetic fuel cars. The brand is aiming for more than 80 percent of its sales to be electric by 2030.
Due to the war in Ukraine, however, supply problems have affected deliveries in 2022. According to the data, 11.3% of Porsches delivered that year were exclusively electric, representing a 2.4% drop from the previous year.
In order to meet its objectives, Porsche should therefore increase its range of electric models, but also convert its models. Thus, the Porsche Macan should be available in an electric version as early as 2024, as well as the sporty 718 range and the fourth generation Cayenne in 2025.
Unstable shares
Since the luxury car brand went public on September 29, the company’s shares have only risen. However, the share price is down as of this morning, down nearly 6% as of around 3 p.m.
In its earnings release, Porsche said it would pay a dividend of €1 per common share and €1.01 per preferred share for 2022. “The medium-term goal is to distribute about half of the after-tax profit as a dividend”, Meschke said.
Read also >Automobile : the European Parliament votes to end the use of internal combustion engines in 2035
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The German carmaker announced on Monday record profits and revenues in 2022, thanks to increased car deliveries and cost reductions. In 2023, it expects sales of 42 billion euros, up 12% from 2021.
This Monday, Porsche AG lifted the veil on record profits and revenues in 2022. The luxury car brand has posted a 27.4% increase in annual profit, to 6.8 billion euros, for a 13% increase in sales to 37.6 billion euros. A good performance, but still slightly below the forecasts of analysts from Refinitiv, a provider of data and infrastructure to the financial markets, who were expecting a profit of 6.86 billion euros and a turnover of 38.3 billion euros.
Deliveries, meanwhile, rose 2.6 percent to nearly 310,000 cars.
“The keys to our success are better price positioning, a strong product range, increased group sales, currency effects and, last but not least, consistent cost discipline”, said Lutz Meschke, the brand’s CFO.
In addition to the good results, Meschke said supply chain issues, geopolitical tensions and rising inflation still pose a challenge for the automotive industry.
Road to 20 program
The company is targeting an increase in revenue to €40-42 billion this year and a margin of 17-19%. In 2023, the company is launching its Road to 20 program, which aims for a group operating profitability of more than 20 percent over the long term.
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The German carmaker announced on Monday record profits and revenues in 2022, thanks to increased car deliveries and cost reductions. In 2023, it expects sales of 42 billion euros, up 12% from 2021.
This Monday, Porsche AG lifted the veil on record profits and revenues in 2022. The luxury car brand has posted a 27.4% increase in annual profit, to 6.8 billion euros, for a 13% increase in sales to 37.6 billion euros. A good performance, but still slightly below the forecasts of analysts from Refinitiv, a provider of data and infrastructure to the financial markets, who were expecting a profit of 6.86 billion euros and a turnover of 38.3 billion euros.
Deliveries, meanwhile, rose 2.6 percent to nearly 310,000 cars.
“The keys to our success are better price positioning, a strong product range, increased group sales, currency effects and, last but not least, consistent cost discipline”, said Lutz Meschke, the brand’s CFO.
In addition to the good results, Meschke said supply chain issues, geopolitical tensions and rising inflation still pose a challenge for the automotive industry.
Road to 20 program
The company is targeting an increase in revenue to €40-42 billion this year and a margin of 17-19%. In 2023, the company is launching its Road to 20 program, which aims for a group operating profitability of more than 20 percent over the long term.
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