In this first quarter of 2023, the results of various automotive groups start to be published, and the trend is emerging: Despite a significant drop in sales last year, revenues and profits are growing. And this is also true for the Volkswagen Group, which has just presented results for the 2022 fiscal year.

The total turnover of the group increased by 11.6% to 279.2 billion euros, thanks to an increase in the average price of their cars. Shipments of 100% electric vehicles increased significantly, while total vehicle deliveries decreased by 7% (8.263 million units compared to 8.882 million in 2021) due to semiconductor shortages or even supply chain disruptions.

A total of 572,100,100% electric cars were delivered, i.e. 26% more than in the previous year (now 7% of the total volume of deliveries).

The sales margin is increasing

Operating profit before exceptional items increased to 22.5 (20 in 2021) billion euros, corresponding to an ROS (operating return on sales) of 8.1% (8.0% in 2021). Pre-tax profit increased by 9.5% to 22 (20.1 in 2021) billion euros. Profit after tax increased by 2.6% to 15.8 (15.4 in 2021) bln.

The automotive division’s net cash as of December 31, 2022 was €43 billion, of which €16.1 billion came from successful IPO of Porsche AG in September 2022. In January 2023, 9.5 billion dividends were paid to shareholders.

The Management Board and the Supervisory Board propose a dividend of EUR 8.70 per ordinary share and EUR 8.76 per preferred share, which represents an increase of EUR 1.20 per ordinary and preferred share, respectively, compared to the previous year. This equates to a payout ratio of 29.4%. Earnings per common share amounted to €29.63 (29.59 in 2021) and earnings per preferred share amounted to €29.69 (29.65 in 2021).

Volkswagen is optimistic about 2023

The Volkswagen Group is accelerating its transformation activities and investing in software, battery-related activities and platforms dedicated to electric vehicles to prepare for release of new products from 2024.

As a result, R&D spending rose to €18.9 billion in 2022, with R&D accounting for 8.1% of the automotive division’s revenue.

Volkswagen Group expects vehicle deliveries to increase to around 9.5 million in 2023, mainly due to the strength of the order book, while supply chain and logistics issues are expected to ease later this year. The Wolfsburg firm also estimates a 10-15% increase in turnover compared to last year.