Volkswagen Q1 Report 2024
“As expected, our first quarter results show a slow start to the year. We remain confident of achieving our financial targets for 2024. A strong March, the solid order bank and the improving order intake in the past months are encouraging and should already have a positive impact in the second quarter. We expect additional momentum over the course of the year from the launch of more than 30 new models across all brands. At the same time the effects our efficiency programs will gradually unfold as the year progresses. In this context, it will be particularly important to vigorously counteract the increase in fixed costs and exercise investment discipline” Arno Antlitz, CFO & COO Volkswagen Group
Highlights
- EUR 75.5 billion sales revenue in Q1 2024, slightly below Q1 2023 (EUR 76.2 billion)
- The significantly increased sales revenue in the Volkswagen Financial Services business largely compensate for the decline in the Automotive division (-4%).
- EUR 4.6 billion Operating Result in Q1 2024, 20% below Q1 2023 (EUR 5.7 billion) / Operating Margin of 6.1%
- Lower sales volumes, an unfavourable country, brand and model mix as well as an increase in fixed costs compared to the same period last year had the expected negative impact on the Operating Result in Q1.
- EUR -3.0 billion net cash flow in the Automotive Division in Q1 2024 (EUR 2.2 billion)
- Reversal of the exceptionally strong reduction in working capital at year-end 2023 and the expected build-up of inventories in preparation for the product offensive weigh on net cash flow with EUR 5.9 billion in Q1 2024
- 2.1 million vehicle sales in Q1 2024, down by 2% compared to Q1 2023; revenue relevant vehicle sales down by 5% to 1.4 million vehicles
- Asia-Pacific (+2%) and South America (+19%) recorded growth. In Europe/ Rest of World and North America, sales fell by 5% and 10%, respectively.