The Audi Group recorded improved performance through Q3, following a strong showing in the first half of the year. Between January and September 2023, the Audi Group delivered 1,405,000 vehicles, including Audi, Lamborghini, and Bentley models to customers. This marks a 16% increase compared to the same period last year, particularly driven by significant growth in the US and European regions. Group revenue reached 50.4 billion euros, marking a 13% increase, with operating profit recorded at 4.6 billion euros and an operating margin of 9.1%, within the target range. Electric vehicle deliveries reached 123,000, expanding by 60%, further proving the strengths of the pure electric vehicle business and the success of the electrification strategy.
Jürgen Rittersberger, CFO of Audi, stated, “As of the end of Q3, Audi has maintained outstanding financial performance and has largely met the forecasts for the fiscal year 2023. Despite challenging circumstances, we achieved double-digit sales growth and our targeted operating margin.”
The Audi Group delivered 1,405,000 vehicles to customers from January to September 2023. This represents a noteworthy 16% increase compared to the previous year. Up to Q3, Audi has delivered 1,387,000 vehicles, marking a 16% increase year-on-year, with 175,000 vehicles delivered in September alone, resulting in a remarkable 24% year-over-year increase.
Audi also recorded exceptional growth in its pure electric vehicle segment. By September, they delivered over 123,000 vehicles, achieving a 60% increase compared to the same period last year, and a 77% increase compared to last September. The Audi Q4 e-tron (+162%) significantly contributed to this growth. The proportion of electric vehicles in total deliveries increased to approximately 9%.
Hildegard Wortmann, Audi Group board member and head of sales & marketing, remarked, “Audi is continuously accelerating in the electrification segment, which is clearly proven by the nearly 60% increase in pure electric vehicle deliveries year-over-year. Furthermore, delivering around 1.4 million vehicles to customers, representing a 16% increase compared to the previous year in a challenging environment, is very satisfying. I thank all Audi employees for achieving such solid results.”
During the first nine months of 2023, the Audi brand experienced significant growth in global markets. In Europe, around 559,000 vehicles were delivered, representing a 24% increase compared to the previous year. The German market made a substantial contribution, with approximately 185,000 vehicles delivered, a 20% increase year-on-year. The electric vehicle segment also saw a 24% growth, with the UK and Italy recording a 30% increase in vehicle deliveries compared to last year.
Similarly, the US market recorded excellent performance, delivering approximately 168,000 vehicles to customers, a 26% increase over the previous year. This performance was particularly evident in the electric vehicle sector, where electric vehicle deliveries in the US rose by 48% year-on-year and 93% compared to Q3 of the previous year.
In the Chinese market, Audi delivered approximately 522,000 vehicles, showing a 5% increase compared to the previous year. In September, 72,000 vehicles were delivered, marking a 25% increase compared to the same month last year, and the growth rate for Q3 exceeded 10% year-on-year.
Thanks to the growth in delivery volumes, the Audi Group achieved revenue of 50.39 billion euros from January to September 2023, marking a 13.1% increase (2022: 44.56 billion euros). The proportion of revenue accounted for by EU classification methods rose to 15.7% of total revenue (2022: 12.4%).
As of September 2023, the Audi Group’s operating profit amounted to 4.595 billion euros (2022: 6.25 billion euros). The decrease in operating profit compared to the previous year was primarily influenced by raw material hedging trades amounting to 1.1 billion euros. Raw material hedging had a positive effect of 400 million euros last year but caused a 700 million euro reduction in operating profit as of September this year. Rising raw material prices also significantly impacted operating profit.
Overall, the Audi Group achieved an operating margin of 9.1% (2022: 14.0%), falling within the target range. Excluding the impact of raw material hedging, the operating margin was at 10.5%.
Lamborghini delivered 7,744 vehicles (2022: 7,430) as of September, marking a 4.2% growth. Revenue increased by 5.2% to 2.026 billion euros (2022: 1.926 billion euros), and operating profit rose by 8.4% to 618 million euros (2022: 570 million euros). The operating margin significantly increased to 30.5% (2022: 29.6%).
Bentley delivered 10,053 vehicles (2022: 11,316) from January to September this year. Revenue totalled 2.309 billion euros (2022: 2.490 billion euros), and operating profit reached 560 million euros (2022: 575 million euros). The brand’s operating margin was 21.9% (2022: 23.1%).
Ducati delivered 47,867 motorcycles (2022: 49,858) as of September. Revenue increased to 807 million euros (2022: 872 million euros), while operating profit surged by 28.1% to 140 million euros (2022: 109 million euros). Ducati’s operating margin rose to 15.9% (2022: 12.5%).
The Audi Group’s financial performance saw a slight decrease as of the end of September this year, standing at 1.219 billion euros (2022: 1.283 billion euros). The significant decline in the Chinese business, which decreased to 669 million euros (2022: 823 million euros), had a considerable impact. However, this decline was partially offset by interest and securities income.
After-tax profit as of September reached 4.472 billion euros (2022: 5.817 billion euros), while the Audi Group’s net cash flow remained stable at 3.498 billion euros (2022: 4.579 billion euros). The overall revenue decrease resulted not only from the decline in after-tax profit but also from increased expenditures related to restructuring the group’s product portfolio. Changes in working capital also impacted net cash flow.
For the year 2023, the Audi Group expects vehicle deliveries between 1.8 million and 1.9 million, with revenue projected to be between 69 billion and 72 billion euros. The operating margin is anticipated to be in the range of 9% to 11%, and net cash flow is expected to be between 4.5 billion and 5.5 billion euros. The ratio of research and development expenditures is likely to exceed the forecast of 6-7%. Additionally, the expected return on investment range has been adjusted to 17-20% (previously 19-22%).
Inquiries can be directed to Jahn Jin at daedusj@autodiary.kr.