Volvo Truck Q1 Report 2023

• In Q1, net sales increased by 29% to SEK 89,556 M
• Adjusted operating income increased to SEK 12,715 M (8,690) with a margin of 14.2% (12.5)
• Order intake increased by 32% and deliveries by 11%

In Q1 2023, the truck operation’s net sales amounted to SEK 89,556 M, which was 29% higher than in Q1 2022. Excluding currency effects, net sales increased by 21% with sales of vehicles increasing by 24% and sales of services by 10%.

Adjusted operating income increased to SEK 12,715 (8,690), corresponding to an adjusted operating margin of 14.2% (12.5). Adjusted operating income excludes a positive effect of SEK 139 M related to a decrease of the provision announced in 2018 for the premature degradation of an emission control component. In Q1 2022, adjusted operating income excluded a negative effect of SEK 1,447 M primarily from provisioning of inventories and receivables related to Russia. For more information on adjusted operating income, see Note 6.

Compared with Q1 2022, the higher adjusted operating income is an effect of price realization and increased volumes. Earnings were negatively impacted by higher material costs as well as increased R&D and selling expenses. Compared with Q1 2022, currency movements had a positive impact of SEK 850 M.
Reported operating income amounted to SEK 12,854 M (7,243).