Porsche AG: First half of 2024 results and future forecast revisions

Q2 2024 to be better than Q1

Well, recently, about Porsche's EV strategy and sales figuresI haven't heard many good things about it, and again from suppliers.Parts supply shortage problem emergesThis is likely to have a major impact on future Porsche production, so it's not all good news for Porsche.

In the midst of all this, you might be wondering, "Why do they have to announce this at now?" (just kidding), but Porsche AG announced its financial results for the first half of 2024 (January to June).

Of course, I understand that Porsche cannot make a negative announcement, but I would like to see a positive announcement, just like Porsche would make one (lol)!

Porsche AG achieves better performance in second quarter of 2024 than first quarter, strong first-half financial figures

• Porsche is seeing increased demand for its innovative 911 Carrera GTS T-Hybrid
• Long-term product portfolio strengthened with 911 updates and new fully electric Macan
• Financially, the company has regained momentum after a subdued start to 2024.
• Group operating profit margin for the second quarter was 17.01 TP1T, at the high end of expectations
• As a result, despite the challenging circumstances, the Group's operating profit margin for the first half of 2024 exceeded 151 TP1T.

• 2024 will continue to be a year of new product launches
• The highlight of the series is the 911 announced in May.
• Porsche updates five of six model lines in just a few months

• Demand for the new 911 Carrera GTS, the first road-legal car with an ultra-lightweight, high-performance hybrid system based on technology developed and tested in motorsport, has exceeded expectations
• The updated Panamera, Taycan and 911 have all been released on schedule in recent months.
• New fully electric Macan to be launched in September
• New products attract people with a variety of world-first technologies, but many new products launched in the first half of the year still affect sales and inventory
• Furthermore, due to model changes, research and development expenses and sales activity expenses increased significantly and irregularly.
• This resulted in the expected decline in sales and profits.
• Group sales in the first half of 2024: €19.46 billion (previous year: €20.43 billion)
• Group operating profit margin was 15.71 TP1T (previous year: 18.9%)
• Automotive net cash flow of €1.12 billion (2017: €2.22 billion)

A more balanced sales structure

• The company remains financially strong and profitable even in difficult times thanks to its value-oriented sales strategy and well-balanced sales structure.
• This allows the market to absorb fluctuations in individual markets to a large extent.
• Deliveries in the first half of 2024 decreased by 6.81 TP1T to 155,945 units.

• China market declines, while European and German markets grow
• Sales in the International and Emerging Markets region remain at the high level recorded in the previous year
• This stable position allows the company to pursue a strategy that emphasizes value over quantity.
• As the transition to e-mobility progresses differently around the world, Porsche has already started to realign and reprioritize its projects and products around ICE technology.
• Part of the strategy is to maintain maximum flexibility as possible in the production of different types of powertrains.
• Porsche will continue to focus on three powertrain types: full EV, plug-in hybrid and ICE.
• Porsche customers will continue to be able to choose from a wide range of powerful and efficient combustion, hybrid and electric models.

FY2024 forecast revised

• Various suppliers to Porsche AG are currently experiencing severe supply shortages of special aluminum alloys.
• The supply shortage was caused by flooding at a production facility of a major European aluminum supplier, which had notified customers in writing of the force majeure event.
• The affected parts are lightweight body parts made of aluminium, which are used across all model series manufactured by Porsche.
• Despite immediate measures, it is becoming clear that impending supply shortages are hampering production and that there will not be enough to cover the entire year of their life.
• Against this background, the Porsche Management Board has decided to adjust its forecasts for the 2024 financial year.
• The following numbers are currently projected for fiscal year 2024:
  • Profit margin on sales 14% to 15% (previous forecast: 15% to 17%)
  • Sales: 39-40 billion euros (previous forecast: 40-42 billion euros)
  • Automotive division net cash flow margin 7.% to 8.5% (previous forecast: 8.5% to 10.5%)
  • Automotive EBITDA margin 23% to 24% (previous forecast: 24% to 26%)
  • Share of BEVs for automobiles 12%-13% (previous forecast: 13%-15%)

Disclaimer

This press release contains forward-looking statements and information that reflect Dr. Ing. hc 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.

Well, although there have been a lot of positive announcements, my impression is that the current numbers are quite grim.

But the only thing that makes me think "huh?" is that "Porsche has already begun re-adjusting and reprioritizing its projects and products around ICE technology."

Of course, Porsche didn't move towards electrification out of their own volition (due to legal regulations etc.), so they probably won't just blindly say "we're going to focus on ICE after all", but the fact that they have already "started making changes" is good news for all ICE lovers (including me), right?

In any case, I hope that Porsche will continue to be a wonderful brand loved by many people around the world and continue to provide great cars.

Source:(Official) Porsche posts strong second quarter with a 17 percent return on sales – and a robust first six months of 2024

Related article:
◆Porsche cuts 2020 outlook, shares fall by biggest ever; production may be halted for weeks
◆Porsche's goal of making 80% of its new car sales fully electric by 2030 is unclear
◆Porsche worldwide sales in the first half of 2024 (Q1 & Q2)

◆Porsche AG's sales from January to June 2023 are 20.43 billion euros (approximately 3.17 trillion yen) and operating profit is 3.85 billion euros (approximately 597 billion yen)
◆Worldwide Porsche sales in the first half of 2023 (Q1 & Q2)

Rika (911supercars.com)

I'm Rika, the author of this article. Ever since Porsche 911 became my favorite car, I've become totally addicted to Porsche, and I can't stop loving Porsche, so I started this blog. My favorite cars are 911 Carrera (991.2), 911 Carrera Cabriolet (992.1), and 911 Carrera T (992.1).