Porsche reports hike in sales revenue, operating profit

MANILA: Porsche has seen an increase in its sales revenue and operating profit in the first half of 2022. Sales revenue was €17.92 billion, while operating profit was €3.48 billion.

The return on sales also rose to 19.4% from 16.9% in the same period last year.

In a statement, Porsche AG Executive Board Deputy Chairman and Executive Board for Finance and IT Member Lutz Meschke said, “We are proud to have made significant gains in sales revenue and earnings in this difficult market environment. It’s been a real team effort by the workforce and management.

Porsche sold 145,860 units from January to June. The first half of the year also saw a rise in return on sales to 19.4%, which was primarily caused by a strong product mix, currency effects, and other business sectors.

Porsche AG Executive Board Chairman Oliver Blume is confident about the future, following the company’s impressive performance in the first half of 2022. “Porsche stands for sporty, modern luxury. With this, we see ourselves as well-positioned in the sweet spot of the automotive industry,” he said. “We believe we are ahead of other luxury automotive manufacturers with our strong focus on sustainability. We take a holistic view of sustainability: ecological, social and value-based. Our ambition is to be net carbon neutral in 2030.”

Automotive net cash flow also rose to €2.39 billion. “Despite continued robust investment in our future projects, we were again able to generate strong automotive net cash flow. We believe our cash flow focus is paying off here,” Meschke stated.

Despite an ongoing challenging supply situation and rising raw material and energy prices, Porsche targets to achieve a return on sales of between 17% and 18% for 2022, with sales revenue of between €38 billion and €39 billion. Porsche's target return on sales for the medium term is somewhere between 17% and 19%.

The forecast for 2022 is based on various assumptions, including that the COVID-19 pandemic will not significantly worsen economic conditions in Porsche's key markets; that there will not be any major supply chain issues, particularly in relation to semiconductors, energy, and material parts and components; that there will not be any huge rise in raw material prices, and that the conflict in Ukraine will not ultimately intensify. Porsche's long-term goal is to surpass a 20% return on sales for the Group.

“The global economy is facing challenging times, but the current figures for the first half of 2022 give us confidence in our resilience,” Meschke said.

Photo from Porsche

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