The Brand Group Core delivered sturdy monetary ends in the primary quarter of 2024. With steady car gross sales and barely decrease gross sales income, the Brand Group Core reported a big year-on-year enhance in working revenue and working return. At 6.4%, working return was nicely throughout the goal hall of 6-7% for 2024. All manufacturers contributed to this achievement, reporting greater returns on the idea of centered price administration in addition to elevated implementation of synergy and effectivity measures throughout the Brand Group. The monetary efficiency within the first quarter felt the influence of offsetting results – these included, for instance, the abrupt termination of presidency incentives for electrical vehicles within the German market and the associated low cost measures firstly of the 12 months. Furthermore, there was excessive depreciation attributable to investments in product campaigns and the associated ramp-up of electrical merchandise.
The Brand Group Core was, nonetheless, capable of counteract these results within the first quarter of 2024 with a balanced product combine. The slight dip in demand for all-electric autos (BEV) was offset by greater deliveries of ICE fashions. Overall, steady Q1 unit gross sales figures at Brand Group stage mirror these results.
Significant enhance in Brand Group revenue and return on the again of strong car gross sales and gross sales income.
Key monetary efficiency indicators affirm the energy and resilience developed by the Brand Group Core: with unit gross sales of 1,191,926, the Brand Group’s car gross sales virtually matched the excessive prior-year stage (Q1 2023: 1,192,974 autos). Even although gross sales income got here in at 32.8 billion euros – thus barely decrease than the very robust gross sales stage of the earlier 12 months (Q1 2023: 33.2 billion euros) – working revenue earlier than particular objects grew 21% to 2.1 billion euros (Q1 2023: 1.7 billion euros).
The working return (earlier than particular objects) improved by 1.2 proportion factors to six.4%. Cash outflows within the first quarter had been primarily attributable to preparations for brand new mannequin ramp-ups.
The Brand Group Core delivered 1,543,500 autos to prospects within the first quarter of the 12 months, 6.2% greater than the identical prior-year quarter (Q1 2023: 1,453,500 autos). All-electric fashions accounted for an necessary share of deliveries: essentially the most profitable all-electric fashions from the Group delivered worldwide within the first quarter of 2024 had been the ID.4, ID.3, Škoda Enyaq and ID. Buzz. Škoda delivered 12.3% extra all-electric autos in Q1 2024 in contrast with the identical prior-year quarter. At Volkswagen Commercial Vehicles, the rise was as excessive as 29.4%.
Key figures for the Brand Group Core:
Key financials |
Q1 2024 |
Q1 2023 |
Change 24/23 |
Unit gross sales (in 1000’s) |
1,192 |
1,193 |
0% |
Sales income |
32.77 billion euros |
33.16 billion euros |
-1% |
Operating revenue earlier than particular objects |
2.11 billion euros |
1.74 billion euros |
+21% |
Operating return earlier than particular objects |
6.43% |
5.25% |
+1.2%-points |
The Volkswagen Passenger Cars, Škoda, SEAT/CUPRA and Volkswagen Commercial Vehicles manufacturers every contributed to the sturdy Brand Group Core Q1 outcomes for fiscal 2024.
Unit gross sales on the Volkswagen Passenger Cars model within the first quarter of fiscal 2024 ran at 694,617, 5% down on car gross sales for a similar prior-year quarter (Q1 2023: 730,797 autos). Given the commonly difficult market surroundings, a really robust efficiency within the first quarter of the earlier 12 months and mannequin adjustments in key quantity drivers (Golf, Tiguan, Passat), gross sales income firstly of the 12 months got here in at 19.3 billion euros, 6% decrease than the prior-year determine (Q1 2023: 20.5 billion euros). At the identical time, nonetheless, the working revenue earlier than particular objects improved by 26.8% to 770 million euros, confirming the Volkswagen model’s steady place total in a risky market. At 4.0%, the working return (earlier than particular objects) was noticeably greater than the prior-year determine of three.0%, pushed by a constructive regional combine and worth results that in flip had been counteracted by pay will increase.
Patrick A. Mayer, Member of the Board of Management of the Volkswagen Brand answerable for “Finance”, commented: “The solid results for the first quarter of 2024 show that our cost optimization measures are having an effect and the brand is successfully strengthening its resilience. Implementation of the Volkswagen brand’s comprehensive performance program continues to gather momentum and will make us even more effective and faster in this challenging year of 2024.”
Škoda Auto delivered 220,500 autos worldwide within the first quarter of 2024, a rise of 5.2% in contrast with the earlier 12 months. The order consumption stays promising. Sales income got here in at 6.6 billion euros, barely down on the determine for Q1 2023 (6.8 billion euros). This is partly attributable to greater materials prices. The working revenue earlier than particular objects ran at 535 million euros and the working return (earlier than particular objects) was 8.1%, barely above the extent for a similar prior-year quarter
(Q1 2023: 8.0%). With deliveries operating at 61,200 (+36%), the Octavia remained the model’s best-selling mannequin.
SEAT/CUPRA reported a constructive begin to enterprise 2024. First-quarter car gross sales by the model ran at 164,300 models, a rise of 6.2% in contrast with the primary quarter of the earlier 12 months. SEAT/CUPRA generated gross sales income of three.8 billion euros, a rise of 6.8% on the determine for Q1 2023. The working revenue earlier than particular objects developed significantly nicely, rising 57% to 226 million euros. The working return (earlier than particular objects) improved to five.9%, similar to an increase of 1.9 proportion factors on the determine for Q1 2023. These constructive figures mirror the profitable market penetration of SEAT/CUPRA and the rising recognition of SEAT/CUPRA fashions.
Business improvement on the Volkswagen Commercial Vehicles model within the first quarter of 2024 was constructive. Vehicle gross sales of 121,906 models represented 17% progress in contrast with similar quarter in 2023. There was corresponding 16% progress in gross sales income to 4.2 billion euros. Particularly noteworthy is the rise in working revenue earlier than particular objects, which greater than doubled to 400 million euros (+ 134%). The working return (earlier than particular objects) got here in at 9.6%, a rise of 4.8 proportion factors.
Outlook
The subdued financial prospects, rising competitors and political challenges will proceed to form the present fiscal 12 months. Against this backdrop the Brand Group Core because the “core of the Volkswagen Group” has outlined its key priorities: to spice up its monetary energy and innovativeness in addition to enhance its resilience. 2024 can be a 12 months of complete mannequin change. The Volkswagen model started the present 12 months with the market launch of the three most necessary quantity fashions: Tiguan, Golf und Passat. The Brand Group Core will additional strengthen its market place by debuting additional enticing new fashions such because the all-electric Volkswagen ID.7 Tourer, the long-wheelbase ID. Buzz and the CUPRA Tavascan. The Brand Group Core’s working return in Q1/24 was throughout the full-year goal hall of 6-7%. With a transparent give attention to additional decreasing complexity, shortening improvement cycles and systematically tapping into synergy potentials, the Brand Group Core is on monitor to satisfy its goal of an working return of 8% by 2026.