Volvo Full-Year Report 2023

During 2023, dedicated colleagues across the Volvo Group worked hard to keep our customer commit- ments and reduce the lead times as we delivered from the backlogs of vehicles and machines that have been extended since the pandemic. It was also a year characterized by geopolitical turmoil, continued supply chain dis- turbances and cost inflation. In these challenging circumstances, the Volvo Group continued to deliver strong growth, profitability and cash flow.

Our currency-adjusted net sales grew by 11% to SEK 552.8 billion, with sales of vehicles and machines increasing by 12% and services by 10%. Sales increased in all regions except South America. We improved our adjusted operating income to SEK 77.6 billion (50.5), corresponding to an adjusted operating margin of 14.0% (10.7). Both sales and profitability were at all-time highs.

Higher sales and improved operating income

For the Volvo Group, 2023 was a year with a strong increase in net sales and an improved operating income, despite challenges created by geopolitical turmoil, supply chain constraints and high inflationary pressure. Mitigation of cost inflation was done successfully with price management.

During 2023, net sales increased by 17% to SEK 553 billion (474). Adjusted for currency movements, the sales increase was 11%, of which vehicle sales increased by 12% due to successful price management, higher deliveries and reduction of the backlog that had been extended since the pandemic, and service sales increased by 10%, as good utilization of vehicles and machines drove demand for spare parts and services.