The Volkswagen Group’s Brand Group Core, consisting of Volkswagen, ŠKODA, SEAT/CUPRA, and Volkswagen Commercial Vehicles, saw increased efficiency and profitability in the first half of 2023. The improved cooperation between these sister brands contributed to the significant growth in operating profit and returns for the Brand Group Core. The Volkswagen Group aims to maximize the performance of its brand groups while taking advantage of economies of scale through its new steering model.
During this period, the Brand Group Core reported an operating result before special items of EUR 3.77 billion, a 42.5 percent increase compared to the same period in the previous year. The operating return on sales before special items also rose from 5.0 percent to 5.5 percent. Consolidated sales revenue increased by 30 percent to EUR 68.76 billion, and net cash flow reached EUR 2.56 billion, a 46.4 percent increase. These positive results were driven by synergies, scaling effects, pricing measures, and the deconsolidation of Russian companies, which offset higher commodity prices.
Unit sales by the Brand Group Core grew by 25 percent, with 2.45 million vehicles sold in the first half of 2023 compared to 1.96 million vehicles in the same period of the previous year. The brand group also experienced a significant increase in vehicle deliveries, with a total of 3.12 million vehicles handed over to customers, an 11.6 percent increase compared to the first half of 2022. Notably, the BEV segment showed strong growth, with 227,300 electric vehicles delivered, a 54.1 percent increase.
Thomas Schäfer, Member of the Volkswagen Group Board of Management responsible for the Brand Group Core, emphasized that although the first half of 2023 showed solid development, there is more work to be done to enhance efficiency and profitability. Schäfer highlighted the importance of intensified cooperation and leveraging synergy potential among the individual brands, the brand group, and the Volkswagen Group as a whole. He also emphasized that these efforts benefit the customers by enabling continued investment in innovations and technologies, leading to superior vehicles compared to the competition.
The key financial figures for the Brand Group Core in the first half of 2023 include:
| Key financials |
H1 2023 |
H1 2022 |
Change 23/22 |
| Unit sales |
2,450,000 vehicles |
1,956,000 vehicles |
+25% |
| Sales revenue |
EUR 68.76 billion |
EUR 53.01 billion |
+30% |
| Operating profit before special items |
EUR 3.77 billion |
EUR 2.65 billion |
+42.5% |
| Operating return on sales before special items |
5.5% |
5.0% |
+0.5%-points |
| Net cash flow |
EUR 2.56 billion |
EUR 1.75 billion |
+46.4% |
The success of the Brand Group Core in the first half of 2023 can be attributed to the strategic development of the individual brands within the group.
The Volkswagen brand achieved a 25 percent increase in unit sales, from 1.22 million vehicles in the first half of last year to 1.52 million vehicles in 2023. However, higher product costs and a special charge related to Russia impacted the operating profit, which amounted to EUR 1.64 billion compared to EUR 1.86 billion in the same period in 2022. Sales revenue increased from EUR 33.32 billion to EUR 42.95 billion, but the operating return on sales before special items decreased by 1.8 percentage points to 3.8 percent.
ŠKODA Auto reported a strong first half-year, with an increase of 19.9 percent in unit sales, delivering 432,173 vehicles to customers worldwide. The company generated sales revenue of EUR 13.75 billion, a 34.5 percent increase over the same period in 2022. The operating profit before special items rose by 34.8 percent to EUR 911 million, maintaining a solid return on sales of 6.6 percent despite a special charge related to Russia.
SEAT/CUPRA achieved a significant rise in unit sales, with a growth of 35 percent and 317,395 vehicles sold. The company reported an operating profit of EUR 371 million, an increase of EUR 486 million from the first half of 2022. The return on sales in H1 reached 5.0 percent, and sales revenue rose to EUR 7.41 billion, a 37.8 percent increase compared to the first half of 2022.
Volkswagen Commercial Vehicles (VWN) continued its positive business development, with a 38 percent increase in unit sales to 211,747 vehicles. Sales revenue rose 47 percent to nearly EUR 7.42 billion, and the operating profit before special items reached EUR 448 million, compared to EUR 187 million in the first half of the previous year. Consequently, the return on sales increased from 3.7 percent to 6.0 percent in H1 2023.
Moving forward, the Brand Group Core will continue to focus on profitability and efficiency targets in the second half of 2023. The group aims to achieve a higher return on sales for the year and capitalize on economies of scale and synergies. In order to address ongoing challenges in e-mobility and energy supply, the individual brands will prioritize value-oriented production, cost discipline, and synergy utilization. Additionally, the improved availability of parts, including semiconductors, is expected to support the Brand Group Core’s efforts.
In conclusion, with ongoing growth and market share gains, the Brand Group Core aims to achieve a consolidated return on sales of 8 percent in the long term.
