Porsche AG Revenue, Operating Profit Rise; Return on Sales Slips

By David Sachs

Porsche AG on Wednesday confirmed its 2023 guidance after reporting a jump in revenue and operating profit but a lower return on sales through the first nine months of the year.

The German sports car maker said revenue rose 13% on year to 30.13 billion euros ($31.91 billion). Porsche, which counts Volkswagen as its primary shareholder, credited the sales performance with high demand in Europe, the U.S., and emerging markets, as well as well as a good diversity of sales and rising demand for customization.

Operating profit rose 9% to EUR5.50 billion, while operating return on sales fell to 18% from 19%. Investments in technology and motorsports, prepping for upcoming model launches, and inflation affected the company's return on sales, it said.

Net cash flow for the automotive segment rose to EUR3.39 billion from EUR3.27 billion. The net cash flow margin for the automotive segment fell to 12.2% from 13.4%.

The financial services division had sales revenue grow to EUR2.52 billion from EUR2.47 billion. The operating profit of that division slipped to EUR230 million from EUR301 million because of higher interest rates and refinancing activities, Porsche said.

The company backed its 2023 outlook of operating return on sales between 17% and 19%. The forecast is based on a sales revenue goal of between EUR40 billion and EUR42 billion.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

October 25, 2023 02:20 ET (06:20 GMT)

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