Porsche posts strong start in 2023

Strong Q1

Porsche AG has posted a highly successful start to its first year after going public. In the first three months, Group sales revenue and Group operating profit rose by more than a quarter. Sales revenue rose by 25.5 per cent over the same period last year to 10.10 billion euros (previous year: 8.04 billion euros). Group operating profit rose by 25.4 per cent from 1.47 billion euros to 1.84 billion euros. At 18.2 per cent, the Group operating return on sales was on par with the figure for the same period last year. After the first quarter, automotive net cash flow was 1.43 billion euros (previous year: 778 million euros). The net cash flow margin for the automotive segment rose to 15.3 per cent (previous year: 10.6 per cent). Net cash flow for the previous year was impacted by serious disruptions in the supply chain, among other issues.

Sebastian Rudolph, Vice President Communications, Sustainability and Politics, Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG, Björn Scheib, Head of Investor Relations, 2023, Porsche AG

Market volatility

Markets around the world remain volatile – so we’re all the more satisfied with our figures. The significant growth is due to a number of factors: higher Group sales, continued positive pricing and mix effects. We keep driving our strategy of modern luxury forward, in the interest of our customers,” says Lutz Meschke, Deputy Chairman of the Executive Board and Board Member for Finance and IT at Porsche AG. In spite of challenging circumstances worldwide, Porsche is reaffirming its targets for the complete year 2023. The assumption for Group sales revenue lies in the corridor of 40 to 42 billion euros. “In the event that global challenges do not significantly worsen, we expect a Group operating return on sales for fiscal year 2023 in the range of 17 to 19 per cent,” says Lutz Meschke. “In the long run, we are aiming for a Group operating return on sales of more than 20 per cent.”

Porsche’s Michael Steiner: “We will see step-by-step incremental benefit with lithium-ion batteries. We predict a 2-3% improvement year-by-year.”

Chairman Oliver Blume reacts

Oliver Blume, Chairman of the Executive Board of Porsche AG, adds: “Our sports car brand is celebrating its 75th anniversary this year. And we are stronger positioned than ever before. Our products are highly sought-after by customers around the world. Our business model is flexible and robust – even in a challenging market environment. This can be credited to the entire Porsche team.” Porsche increased its deliveries to customers by 18 per cent year-on-year in the first quarter of 2023 – in spite of the volatile economic situation and limitations in the availability of parts. Overall, the sports car manufacturer delivered 80,767 vehicles in the first quarter (previous year: 68,426).

Sebastian Rudolph, Vice President Communications, Sustainability and Politics, Dr. Wolfang Porsche, 2023, Porsche AG

The financial services division Porsche Financial Services (“PFS”) continued its steady growth in the first three months of the year: Sales revenue rose to 803 million euros (previous year: 776 million euros). The inflation-related rise in the key interest rate quickly reverberated in financing products. The share of leased and financed new vehicles declined accordingly to 41.5 per cent (previous year: 45.7 percent). PFS’s operating profit declined to 86 million euros (previous year: 102 million euros). The downturn is primarily the result of the valuation of interest rate hedges and derivatives.