(AOF) – Volkswagen posts net profit for 2023 up 13% to 17.9 billion euros, above expectations, for turnover also up 15.5% to 322.3 billion euros. The German manufacturer is proposing a dividend increase of 0.30 cents to 9 euros per ordinary share. “We will focus in 2024 on the ramp-up of new vehicles, reducing costs, exploiting synergies within the group and consolidating regional positioning” announces Volkswagen management, welcoming “robust” results in 2023 .
Operating profit increased slightly to 28.6 billion euros.
“The operating return on turnover before exceptional items amounted to 7.0%, despite considerable headwinds linked to the valuation of derivatives on raw materials” underlines the manufacturer’s management. “The latter refers to hedges taken on raw materials via derivatives. The operational return on turnover amounted to 8.1% in 2022. Adjusted for these valuation effects, the operating profit reached 25.8 billion euros, which corresponds to a margin of 8%.
“The share of battery electric vehicle (BEV) deliveries increased every quarter, reaching around 10% in the fourth quarter,” adds Volkswagen. “Over the whole year, the share of BEVs reached 8.3%, a new record”, so that “in absolute figures, Volkswagen delivered 771,100 BEVs last year, which corresponds to an increase of 35% compared to 2022.
Investments are expected to peak in 2024, then approach the target level of 11% of turnover by 2027, we learn. This year, revenue growth could reach up to 5% and operational return on turnover is anticipated between 7% and 7.5%.
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A French market in good shape
The French automobile market recorded its tenth consecutive month of growth in October 2023 with 152,383 registrations of new passenger vehicles (+22% year-on-year). It increased by 16.49% over the first 10 months of 2023, with 1.44 million registrations, almost as many as in 2022 (1.52 million) but much less than the level of 2019 (2.2 million ). However, the forecast indicators are not good because new orders fell by 13% at the end of September 2023. The slowdown in orders could be explained by inflation, the rise in interest rates, and more prudent management of their cash flow by companies (half of the market). If Stellantis (Peugeot, Citroën, Fiat, Opel, Jeep) remains the leader of the French market, with a market share greater than 28%, the Renault group (Renault, Dacia, Alpine) benefited from good performances in October 2023, with almost 31% additional new registrations over one year. The French group represents 24.6% of the private car market.