Scania Group Q3 Report 2023
Scania reports another quarter of strong performance, reflecting sustained demand for our products and services in a challenging business environment.
Scania continued to perform strongly in the third quarter, growing both vehicle and service revenue. Net sales increased by 19 percent to SEK 47.4 billion and with adjusted operating income of SEK 5.5 billion, adjusted operating margin rose to 11.5 percent (7.7). Despite continued disruptions in delivery flows and cost inflation, margins increased thanks to our strong commercial focus. Return on capital employed increased to 28.4 percent (11.1) and the work to improve our cost and capital efficiency continues.
Overall global demand remains at a high level for Scania’s vehicles and services. In Europe, we notice slightly lower transport activity in some markets and that demand is weakening somewhat due to high interest rates and inflation. In Latin America, demand is developing positively mainly driven by Brazil and Mexico. For Scania’s buses and coaches, demand is continuing to rebound. In the third quarter we built the first new generation battery-electric bus according to our updated strategy with deepened bodybuilder partnerships. Orders for our power solutions have dropped significantly from last year’s high levels. Scania’s service business continues its strong development with volume growth of 16 percent. Being able to offer financing to customers remain a core part of our offer and the penetration rate for new vehicles is around 43 percent.
NET SALES BY PRODUCT
Total net sales for Vehicles and Services increased by 16 percent to SEK 47,376 m. (40,752) in the third quarter, positively impacted by a favourable price- and product mix and a positive currency effect. In local currency total net sales increased by 8 percent.
Net sales for Trucks increased by 20 percent to SEK 30,260 m. (25,193) impacted by a positive price- and product mix effect and a positive currency effect. In local currency net sales of Trucks’ increased by 11 percent.
Net sales for Services increased by 16 percent to SEK 10,634 m. (9,164). In local currency Services net sales increased by 9 percent.
