VOLKSWAGEN AG NO. 48/2024
Media information | 30.04.2024 |
Volkswagen Group: Q1 2024 muted as expected - Outlook confirmed
"As expected, our first quarter results show a slow start to the year. We remain confident of achieving our financial targets for 2024. A strong March, the solid order bank and the improving order intake in the past months are encouraging and should already have a positive impact in the second quarter. We expect additional momentum over the course of the year from the launch of more than 30 new models across all brands. At the same time the effects our efficiency programs will gradually unfold as the year progresses. In this context, it will be particularly important to vigorously counteract the increase in fixed costs and exercise investment discipline."
Arno Antlitz, CFO & COO Volkswagen Group
Key Figures
EUR 75.5 billion sales revenue in Q1 2024, slightly below Q1 2023 (EUR 76.2 billion)
EUR 4.6 billion Operating Result in Q1 2024, 20% below Q1 2023 (EUR 5.7 billion) / Operating Margin of 6.1%
The significantly increased sales revenue in the Volkswagen Financial Services business largely compensate for the decline in the Automotive division (-4%).
Lower sales volumes, an unfavourable country, brand and model mix as well as an increase in fixed costs compared to the same period last year had the expected negative impact on the Operating Result in Q1.
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EUR -3.0 billion net cash flow in the Automotive Division in Q1 2024 (EUR 2.2 billion)
Reversal of the exceptionally strong reduction in working capital at year-end 2023 and the expected build-up of inventories in preparation for the product offensive weigh on net cash flow with EUR 5.9 billion in Q1 2024.
2.1 million vehicle sales in Q1 2024, down by 2% compared to Q1 2023; revenue relevant vehicle sales down by 5% to 1.4 million vehicles
Asia-Pacific (+2%) and South America (+19%) recorded growth. In Europe/ Rest of World and North America, sales fell by 5% and 10%, respectively.
Order bank for vehicles in Western Europe stable at a high level in Q1 2024
Order bank of 1.1 million vehicles remains stable at a high level compared to the end of 2023 of which 160,000 are BEVs. Encouraging order intake for important volume models such as the new VW Tiguan and the new VW Passat; order intake for BEVs more than doubled compared to Q1 2023.
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Outlook 2024 confirmed
The Volkswagen Group expects the sales revenue to exceed the previous year's figure by up to 5 percent. The operating return on sales is expected to range between 7.0 percent and 7.5 percent.
In the Automotive Division, the Group assumes an investment ratio of between 13.5 percent and 14.5 percent in 2024. The automotive net cash flow for 2024 is expected to be between EUR 4.5 and EUR 6.5 billion. This will include in particular investments for the future and cash outflows from mergers and acquisitions for the battery business, which are a vital pillar of the Volkswagen Group's transformation. Net liquidity in the Automotive Division is expected to be between EUR 39 billion and EUR 41 billion in 2024. It remains the Group's goal to continue its solid financing and liquidity policy.
Challenges will arise in particular from the economic situation, the increasing intensity of competition, volatile commodity, energy and foreign exchange markets, and more stringent emissions-related requirements.
Further information on the brand groups
Core
Slight decline in sales revenue of 1%; Operating Margin increases to 6.4%, supported by all brands, mainly due to positive price/mix effects; increased fixed costs have a negative impact.
Q1 Results VW on May 2,
2024
TRATON Trucks
TRATON continued its strong topline and earnings trajectory; Operating Margin came in at 9.0%.
Q1 Results Traton on
April 26, 2024
Progressive
Significant decline in sales revenue primarily due to temporary supply constraints for V6 and V8 engines; Operating Margin declines to 3.4% due to volume and mix.
Q1 Results Audi on May 3,
2024
CARIAD
CARIAD continues to roll out software for a growing vehicle park, resulting in a significant increase in licenses. The Operating Loss is slightly higher than in the previous year.
Sport Luxury
Operating Margin declines to 14.8% due to lower volume resulting from the launches of two model lines and investments in digitalization and the product portfolio.
Q1 Results Porsche on April
26, 2024
Volkswagen Group
Mobility
Financial Services recorded an Operating Result of €
0.9 billion, a decline of 24% year-over-year, in line with expectations, due to the normalization of the used car business..
Q1 Results Group Mobility on May 6, 2024
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Key Figures Volkswagen Group
First quarter | ||||||
2024 | 2023 | % | ||||
Volume Data1 in thousands | ||||||
Deliveries to customers (units) | 2,104 | 2,041 | + 3.1 | |||
Vehicle sales (units) | 2,081 | 2,124 | - 2.0 | |||
Production (units) | 2,266 | 2,273 | - 0.3 | |||
Employees (on March 31, 2024/Dec. 31, 2023) | 684.2 | 684.0 | + 0.0 | |||
Financial Data (IFRS), € million | ||||||
Sales revenue | 75,461 | 76,198 | - 1.0 | |||
Operating result | 4,588 | 5,747 | - 20.2 | |||
Operating return on sales (%) | 6.1 | 7.5 | ||||
Earnings before tax | 5,181 | 6,453 | - 19.7 | |||
Return on sales before tax (%) | 6.9 | 8.5 | ||||
Earnings after tax | 3,710 | 4,730 | - 21.6 | |||
Automotive Division2 | ||||||
Cash flows from operating activities | 2,528 | 7,576 | - 66.6 | |||
Cash flows from investing activities attributable to | ||||||
operating activities4 | 5,555 | 5,332 | + 4.2 | |||
Net cash flow | -3,027 | 2,244 | - | |||
Net liquidity at March 31/Dec. 31 | 37,157 | 40,289 | - 3.3 | |||
Investment ratio | 14.4 | 11.9 | ||||
- The figures also include the equity-accounted Chinese joint ventures. Prior-year deliveries have been updated to reflect subsequent statistical trends.
- Including allocation of consolidation between the Automotive and Financial Services divisions.
- Excluding acquisition and disposal of equity investments: Q1 €5,350 (4,954) million.
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Key Figures by brand groups from January 1 to March 31
Vehicle sales | Sales revenue | Operating result | Operating margin | |||||||||||||
Thousand vehicles/€ million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
Core brand group | 1,192 | 1,193 | 32,773 | 33,163 | 2,110 | 1,742 | 6.4 | 5.3 | ||||||||
Progressive brand group | 243 | 323 | 13,725 | 16,883 | 466 | 1,816 | 3.4 | 10.8 | ||||||||
Sport Luxury brand group1 | 71 | 85 | 8,144 | 9,333 | 1,207 | 1,727 | 14.8 | 18.5 | ||||||||
CARIAD | - | - | 179 | 168 | - 552 | - 429 | ||||||||||
Battery | - | - | 2 | 0 | - 79 | - 72 | ||||||||||
TRATON Commercial Vehicles | 81 | 85 | 11,477 | 10,938 | 1,037 | 875 | 9.0 | 8.0 | ||||||||
MAN Energy Solutions | - | - | 971 | 901 | 96 | 101 | 9.9 | 11.2 | ||||||||
Equity-accounted companies | ||||||||||||||||
in China2 | 649 | 609 | - | - | - | - | ||||||||||
Volkswagen Group Mobility | - | - | 13,780 | 11,980 | 786 | 985 | 5.7 | 8.2 | ||||||||
Other3 | - 155 | - 171 | - 5,591 | - 7,168 | - 483 | - 997 | 8.6 | 13.9 | ||||||||
Volkswagen Group | 2,081 | 2,124 | 75,461 | 76,198 | 4,588 | 5,747 | 6.1 | 7.5 | ||||||||
- Including Porsche Financial Services: sales revenue €9,011 (10,097) million, operating result €1,282 (1,840) million.
- The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to €429 (625) million.
- In the operating result, mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands.
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Contact
Christopher Hauss
Corporate Communications Lead, Strategy and Financial Communications
+49 (0) 171 876 9225 christopher.hauss@volkswagen.de
www.volkswagen-group.com
Christoph Oemisch
Corporate Communications Press Spokesperson, Finance and Sales
+49 (0) 5361 9 18895 christoph.oemisch@volkswagen.com
www.volkswagen-group.com
About the Volkswagen Group
The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 114 production facilities in 19 European countries and 10 countries in the Americas, Asia and Africa. With around 684,000 employees worldwide. The Group's vehicles are sold in over 150 countries.
With an unrivalled portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability.
In 2023, the total number of vehicles delivered to customers by the Group globally was 9.2 million (2022: 8.3 million).
Group sales revenue in 2023 totaled EUR 322.3 billion (2022: EUR 279.1 billion). The operating result before special
items in 2023 amounted to EUR 22.6 billion (2022: EUR 22.5 billion).
Volkswagen Aktiengesellschaft Registered office: Wolfsburg Register court: Braunschweig HRB No.: 100484
Chairman of the Supervisory Board: Hans Dieter Pötsch
Board of Management: Oliver Blume (Chairman), Arno Antlitz, Ralf Brandstätter, Gernot Döllner, Manfred Döss, Gunnar Kilian, Thomas Schäfer, Thomas Schmall-von Westerholt, Hauke Stars
Note: The above information is automatically added to each e-mail and does not allow any conclusions to be drawn about the legal nature of the e-mail.
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Volkswagen AG published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:36:10 UTC.
