Interim report January-March 2024
On April 30, 2024 the Volkswagen Group published the results for the first quarter of 2024.
Wolfsburg. The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5 percent. The operating return on sales is expected to range between 7.0 percent and 7.5 percent.
“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.”
Key Figures
The significantly increased sales revenue in the Financial Service business largely compensate for the decline in the Automotive division (-4%).
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.
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.
Asia-Pacific (+2%) and South America (+19%) recorded growth. In Europe/ Rest of World and North America, sales fell by 5% and 10%, respectively.
Order bank for vehicles in Western Europe stable at a high level in Q1 2024
Order bank of 1.1 million vehicles remains stable at a high level compared to the end of 2023 of which 160,000 vehicles are BEVs. Encouraging order intake for important volume models such as the new VW Tiguan and the new VW Passat; order intake for BEVs almost doubled compared to Q1 2023.
Outlook 2024 confirmed
The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5 percent. The operating return on sales is expected to range between 7.0 percent and 7.5 percent.
In the Automotive Division, the Group assumes an investment ratio of between 13.5 percent and 14.5 percent in 2024. The automotive net cash flow for 2024 is expected to be between EUR 4.5 and EUR 6.5 billion. This will include in particular investments for the future and cash outflows from mergers and acquisitions for the battery business, which are a vital pillar of the Volkswagen Group’s transformation. Net liquidity in the Automotive Division is expected to be between EUR 39 billion and EUR 41 billion in 2024. It remains the Group's goal to continue its solid financing and liquidity policy.
Challenges will arise in particular from the economic situation, the increasing intensity of competition, volatile commodity, energy and foreign exchange markets, and more stringent emissions-related requirements.
Further information on the brand groups
Core
Slight decline in sales revenue of 1%; Operating Margin increases to 6.4%, supported by all brands, mainly due to positive price/mix effects; increased fixed costs have a negative impact. Q1 Results Core on May 2, 2024
Progressive
Significant decline in sales revenue primarily due to temporary supply constraints for V6 and V8 engines; Operating Margin declines to 3.4% due to volume and mix. Q1 Results Progressive on May 3, 2024
Sport Luxury
Operating Margin declines to 14.8% due to lower volume resulting from the launches of two model lines and investments in digitalization and the product portfolio. Q1 Results Porsche on April 26, 2024
TRATON Trucks
TRATON continued its strong topline and earnings trajectory; Operating Margin came in at 9.0%. Q1 Results TRATON on April 26, 2024
CARIAD
CARIAD continues to roll out software for a growing vehicle park, resulting in a significant increase in licenses. The Operating Loss is slightly higher than in the previous year.
VW Group Mobility
Financial Services recorded an Operating Result of € 0.9 billion, a decline of 24% year-over-year, in line with expectations, due to the normalization of the used car business. Q1 Results VW Group Mobility on May 6, 2024
Key Figures Volkswagen Group
| First quarter | |||
| 2024 | 2023 | % | |
| Volume Data1 in thousands | |||
| Deliveries to customers (units) | 2,104 | 2,041 | + 3.1 |
| Vehicle sales (units) | 2,081 | 2,124 | – 2.0 |
| Production (units) | 2,266 | 2,273 | – 0.3 |
| Employees (on March 31, 2024/Dec. 31, 2023) | 684.2 | 684.0 | + 0.0 |
| Financial Data (IFRS), € million | |||
| Sales revenue | 75,461 | 76,198 | – 1.0 |
| Operating result | 4,588 | 5,747 | – 20.2 |
| Operating return on sales (%) | 6.1 | 7.5 | |
| Earnings before tax | 5,181 | 6,453 | – 19.7 |
| Return on sales before tax (%) | 6.9 | 8.5 | |
| Earnings after tax | 3,710 | 4,730 | – 21.6 |
| Automotive Division2 | |||
| Cash flows from operating activities | 2,528 | 7,576 | – 66.6 |
| Cash flows from investing activities attributable to operating activities3 | 5,555 | 5,332 | + 4.2 |
| Net cash flow | -3,027 | 2,244 | - |
| Net liquidity at March 31/Dec. 31 | 37,157 | 40,289 | – 3.3 |
| Investment ratio | 14.4 | 11.9 | |
¹ The figures also include the equity-accounted Chinese joint ventures. Prior-year deliveries have been updated to reflect subsequent statistical trends.
² Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.
³ Excluding acquisition and disposal of equity investments: Q1 €5,350 (4,954) million.
Key Figures by brand groups from January 1 to March 31
| Vehicle sales | Sales revenue | Operating result | Operating margin | |||||
| Thousand vehicles/€ million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Core brand group | 1,192 | 1,193 | 32,773 | 33,163 | 2,110 | 1,742 | 6.4 | 5.3 |
| Progressive brand group | 243 | 323 | 13,725 | 16,883 | 466 | 1,816 | 3.4 | 10.8 |
| Sport Luxury brand group1 | 71 | 85 | 8,144 | 9,333 | 1,207 | 1,727 | 14.8 | 18.5 |
| CARIAD | – | – | 179 | 168 | – 552 | – 429 | ||
| Battery | – | – | 2 | 0 | – 79 | – 72 | ||
| TRATON Commercial Vehicles | 81 | 85 | 11,477 | 10,938 | 1,037 | 875 | 9.0 | 8.0 |
| MAN Energy Solutions | – | – | 971 | 901 | 96 | 101 | 9.9 | 11.2 |
| Equity-accounted companies in China2 | 649 | 609 | – | – | – | – | ||
| Volkswagen Group Mobility | – | – | 13,780 | 11,980 | 786 | 985 | 5.7 | 8.2 |
| Other3 | – 155 | – 171 | – 5,591 | – 7,168 | – 483 | – 997 | 8.6 | 13.9 |
| Volkswagen Group | 2,081 | 2,124 | 75,461 | 76,198 | 4,588 | 5,747 | 6.1 | 7.5 |
| ¹ Including Porsche Financial Services: sales revenue €9,011 (10,097) million, operating result €1,282 (1,840) million. | ||||||||