Porsche AG kicks off a year of product launches with determination

Porsche AG kicks off a year of product launches with determination

• Sports car manufacturer generates Group sales revenue of 9.01 billion euros and Group operating profit of 1.28 billion euros
• Group operating return on sales is 14.2 per cent
• Ramp-ups of the new Panamera and Taycan models impact results
• CFO Lutz Meschke: “Even in challenging times, our financial strength allows us to invest decisively in our future. We are strengthening our product portfolio, our innovativeness and our products and services. In the first quarter, we gained a lot of momentum to lay the groundwork for future success.”
• For 2024, Porsche is sticking to its forecast of a Group operating return on sales of 15 to 17 per cent.

Stuttgart. Porsche AG has got off to a vigorous and forward-looking start to the challenging 2024 financial year. In this year of product launches, the sports car manufacturer is renewing four out of its six model lines. The first quarter was marked by the ramp-ups of the third model generation of the Panamera and the new Taycan. In addition, large-scale investments have been made in digitalization and research and development. Accordingly, the Porsche Group recorded an expected decline in sales and earnings in the first three months. At the end of the quarter, Group sales revenue amounted to 9.01 billion euros (previous year: 10.10 billion euros). Group operating profit was 1.28 billion euros (previous year: 1.84 billion euros). Group sales revenue came in at 14.2 per cent (previous year: 18.2 per cent).

“Even in challenging times, our financial strength allows us to invest decisively in our future. We are strengthening our product portfolio, our powers of innovation and our products and services,” says Lutz Meschke, Deputy Chairman and Member of the Executive Board for Finance and IT at Porsche AG. “In the first quarter, we gained a lot of momentum to lay the groundwork for future success. After that, we’ll hit the ground running.” Meschke summarizes the reasons for the current developments as follows: “Porsche is forging ahead with the transformation and will have renewed four of its six model lines by the end of 2024. The comprehensive upgrade of our product portfolio is associated with a great deal of effort and demands a great deal of the entire Porsche team. But our investments and product launches of today are our profits of tomorrow.”

The initiated renewal of the model range caused a strong aperiodic increase in research and development costs and marketing activities in the first quarter of 2024. The two ramp-ups in the first three months also had an impact on inventories and sales. “In a challenging environment, we are staying on course and resolutely pursuing our strategy. In this year of Porsche product launches, we will be putting four exhilarating new sports cars from four model lines on the road. This will ensure the wind is at our back for years to come,” says Chairman of the Executive Board Oliver Blume. “My thanks go to our highly motivated team, who are handling the demanding product launches with aplomb.” The new Panamera and the new Taycan will be followed by new launches in the Macan and 911 model lines. This will make 2024 the biggest year of product launches in the company’s history.

At the end of the first quarter, automotive net cash flow was 107 million euros (previous year: 1.43 billion euros). The net cash flow margin for the automotive segment came in at 1.3 per cent (previous year: 15.3 per cent). The reasons behind the figures include the strategic investments in digitalization (MHP and Applied Intuition) in conjunction with the relatively lower Group operating profit, increased investment in equipment and higher research and development outlays. In addition, Porsche temporarily had higher vehicle inventories and significantly higher advance tax payments in the first quarter than in the same quarter of the previous year due to the product launches of the Panamera and the Taycan.

Deliveries to customers in the first three months of the year came to 77,640 vehicles (previous year: 80,767). Porsche continues to have a very well-balanced sales structure that can compensate for fluctuations in individual sales regions. Growth was particularly strong in the Germany and Overseas and Emerging Markets sales regions: in Germany, 11,274 customers took delivery of their new Porsche – 37 per cent more than in the previous year. In the Overseas and Emerging Markets region, 14,895 new cars were delivered. This equates to an increase of 14 per cent.

Porsche confirms long-term forecasts
Despite a still challenging macroeconomic environment, Porsche AG is sticking to its forecasts, provided that the macroeconomic environment does not deteriorate significantly. The company expects a Group operating return on sales in the range of 15 to 17 per cent for the full year of 2024. This guidance is based on assumed Group sales revenue in the range of 40 to 42 billion euros. In the medium term, Porsche is sticking to its forecast of a Group operating return on sales of roughly 17 to 19 per cent. In the long term, the sports car manufacturer is aiming for a Group operating return on sales of more than 20 per cent.
 

Porsche AG Group	Q1 2024	Q1 2023	Change
Sales revenue	€ 9.01 billion	€ 10.10 billion	-10.8%
Operating profit	€ 1.28 billion	€ 1.84 billion	-30.3%
Operating return on sales	14.2%	18.2%
Automotive net cash flow	€ 0.11 billion	€ 1.43 billion	-92.3%
Deliveries	77,640	80,767	-3.9%

More information can be found on the Investor Relations Website: https://investorrelations.porsche.com/en/

Disclaimer
This release contains forward-looking statements and information that reflect Dr. Ing. h.c. F. Porsche AG's current views about future events. These statements are subject to many risks, uncertainties, and assumptions. They are based on assumptions relating to the development of the economic, political, and legal environment in individual countries, economic regions, and markets, and in particular for the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of publication. If any of these risks and uncertainties materializes or if the assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results may be materially different from those Porsche AG expresses or implies by such statements. Forward-looking statements in this presentation are based solely on the circumstances at the date of publication.We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.