Porsche has recorded robust growth in revenue, operating profit, and profit margin for the first half of 2023.
Revenue reached €20.43 billion, an increase of 14 percent compared to the previous year, while group operating profit rose by 10.7 percent to €3.85 billion. The profit margin exceeded the target range of 17-19 percent, achieving 18.9 percent.
The net cash flow decreased slightly to €2.22 billion from last year’s €2.39 billion (2022). The cash flow margin was recorded at 11.7 percent, down from 14.5 percent in 2022, mainly due to increased investment activities and a temporary rise in inventory. In the first half of this year, vehicles delivered to customers totaled 167,354 units, marking a 14.7 percent increase from the previous year.
Oliver Blume, Chairman of the Executive Board of Porsche AG, emphasized, “Porsche has once again achieved successful managerial performance while making extensive investments for the future. This reflects our commitment to a strategy that does not compromise on anything, and the positive customer feedback and solid performance prove that the brand is heading in the right direction.”
Rutz Mesche, Vice Chairman of Finance and IT at Porsche AG, stated, “I take pride in the performance achieved in the first half of the year under challenging circumstances. Thanks to our stable pricing policy and increased sales volume, both revenue and profit improved, which is a result of the collective efforts of the Porsche team.” He also noted that despite rising costs compared to the previous year, operating profit increased by nearly 11 percent, with the causes of cost increases being inflation, sales activities related to the launch of the new Cayenne, digitalization, and increased motorsport participation.
Even amidst a challenging global economic environment, Porsche AG is affected by supply chain and parts procurement issues, overall cost increases, and various geopolitical tensions. Nevertheless, Porsche remains optimistic about its annual results for 2023, as long as the global economy and supply chain situation do not worsens.
This year, Porsche anticipates group revenues between €40 billion and €42 billion, with an operating profit margin between 17-19 percent. Rutz Mesche highlighted, “Despite the challenging situation, we are expanding investments to foster development and innovation, as well as establishing the Porsche ecosystem for future products and services, thus continuously advancing Porsche’s modern luxury strategy.”
Lee Sang-jin daedusj@autodiary.kr