March 14, 2023: -On Monday, Luxury automaker Porsche AG is issuing an ambitious long-term outlook of over 20% of return on sales following posting record 2022 earnings on the back of higher deliveries.
The carmaker said its operating profit increased by 27% to 6.77 billion euros ($7.23 billion) in the previous year, when deliveries increased by 2.6% to 309,884 units.
On Monday, Porsche CEO Oliver Blume said 2022 was a “very successful year,” with record sales, earnings, operating profit, and a profit margin of 18%.
“Looking back more than the last year, I think the main products we had were a positive product mix, our cost work is very efficient, and on the different side, we had effects at the end presently to come to like a positive result,” Blume told, Annette Weisbach.
“Pricing is important for Porsche, and as of our luxury positioning, we can go to a very positive pricing level. We are increasing prices continuously, not jumping up and down, and have an obvious pricing strategy.”
The company proposes a dividend of 1 euro per ordinary share and 1.01 euros for every preferred share. It issued ongoing increase guidance on both the medium and long term:
“Should the economically challenging not further intensify significantly, we expect a Group which operates return on sales for the 2023 fiscal year in the limit of 17 to 19 per cent,” stated Lutz Meschke, deputy chairman and people of the administrative board for finance and IT.
The medium-term guidance is based on sales earnings ranging from 40 to 42 billion euros.
Meschke added, “In the long run, aiming for a Group operating return on sales of over 20 per cent.”
Porsche represented a substantial portion of earnings for Volkswagen Group and overtook Volkswagen as the most valuable carmaker during its initial week on the German stock market after listing on September 29 of the previous year. Volkswagen still possesses 75% minus one ordinary share of Porsche’s complete share capital. Volkswagen is because of report earnings Tuesday.
On Monday, Porsche shares were down 2.2% in early trade while Volkswagen decreased 2.5%, but the two firms remain up by around 10% and 14%, respectively, since the beginning of 2023.