We learned from the Volkswagen Group official that the Volkswagen Group’s financial performance in 2023 was solid. In the fourth quarter, the group’s sales revenue reached 87 billion euros, and its operating profit increased by more than 25% year-on-year. As of December 2022, the Volkswagen Group has 119 factories around the world with 675,800 employees. In 2023, the Volkswagen Group will deliver a total of approximately 9.24 million vehicles. The Volkswagen Group expects sales revenue to increase by 5% year-on-year in 2024. Operating return on sales is expected to be between 7.0% and 7.5%.
In 2023, Volkswagen Group’s sales revenue will increase by 15%, reaching 322.3 billion euros. Among them, the delivery volume of pure electric vehicles increased by 35% to 771,000 units, and achieved growth in all regional markets. In the past year, the proportion of pure electric vehicles in the group’s deliveries has continued to rise, reaching 8.3% in 2023 (2022: 6.9%). Overall Volkswagen Group deliveries increased by 12% to 9.24 million vehicles. Among them, Europe (a year-on-year growth of 20%) and North America (a year-on-year growth of 18%) are important driving forces for the group. In addition, customer deliveries in the Chinese automotive market increased by 2%.
Despite negative valuation effects, especially the impact of commodity hedging (which amounted to €3.2 billion), the Group’s operating profit (excluding special items) remained at €22.6 billion (2022: €22.5 billion). Operating profit margin before special items was 7.0% (2022: 8.1%). Net cash flow in the Automotive business unit increased to €10.7 billion (2022: €4.8 billion). In addition, with the elimination of bottlenecks in the finished vehicle supply chain, group inventories were significantly reduced at the end of the year, worth approximately €5 billion. After paying dividends of approximately €11 billion, Automotive Division net liquidity remained solid at the year-end at €40.3 billion (2022: €43 billion).
The Volkswagen Group Management Board and Supervisory Board proposed to the General Meeting of Shareholders a dividend of 9.00 euros per ordinary share and a dividend of 9.06 euros per preferred share. Compared with the previous year, the dividend per share of ordinary shares and preferred shares increased respectively. It cost 0.30 euros. The dividend payout ratio is equivalent to 28%, slightly lower than the group’s target of no less than 30%.
The Volkswagen Group will continue to focus on investing in the Chinese market, new products, battery business and platforms for pure electric vehicles and fuel models. In 2024, the investment ratio is expected to reach 13.5% to 14.5%. In the next few years, the group expects the investment ratio to gradually approach the target level of 11% in 2027. By making better use of synergies, the Group will be able to limit initial investments in the five-year plan from 2025 to 2029 to €170 billion.
Volkswagen Group expects sales revenue to increase by 5% year-on-year in 2024. Operating return on sales is expected to be between 7.0% and 7.5%. The group expects that the investment ratio in the automotive business unit will be between 13.5% and 14.5% in 2024. In 2024, net cash flow from the automotive business is expected to be between 4.5 billion and 6.5 billion euros, which includes cash expenditures for future investments and battery business acquisitions. Net liquidity in the Automotive business unit is expected to be between 39 billion and 41 billion euros in 2024.
