Volvo Cars reported today that operating profit (excluding joint ventures and associates) in the first quarter of 2023 increased by 7% to 6.3 billion Swedish kronor (approximately RMB 4.230 billion ) and the EBIT margin was 6.6%.
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Thanks to the XC40 and C40, Volvo Cars sales in the first quarter rose 10% compared with the same period last year, led by a 157% increase in sales of pure electric vehicles. This performance brought the share of pure electric vehicles to 18%, compared with 8% in the first quarter of last year. The automaker will roll out more all-electric vehicles in the coming years, at least once every year until the mid-2000s.
Q1 Operational and Financial Results
Volvo’s revenue in the first three months increased by 29% compared with the same period last year, reaching 96 billion Swedish kronor (about 64.454 billion yuan), and retail sales in the current quarter achieved double-digit growth compared with the same period in 2022 .
- Q1 revenue of SEK 95.7 billion (Q1 2022: SEK 74.3 billion)
- Q1 operating income of SEK 5.1 billion (SEK 6.0 billion in Q1 2022)
- Q1 operating income (excluding joint ventures and associates) SEK 6.3 billion (Q1 2022: SEK 5.9 billion)
- EBIT margin of 5.3% in the first quarter (8.1% in the first quarter of 2022)
- EBIT margin (excluding joint ventures and associates) in the first quarter of 6.6% (7.9% in the first quarter of 2022)
- Basic EPS of SEK 1.21 in Q1 (SEK 1.29 in Q1 2022)
- BEV sales share of 18% in Q1 (8% in Q1 2022)
Volvo said earnings before interest and tax rose despite still high raw material prices. EBIT (excluding joint ventures and associates) in the first quarter rose 7% to SEK 6.3 billion compared to the same period last year.
Looking to the future, Volvo said that 2023 will be another critical year for the company’s continued transformation. They will launch a new pure electric small SUV to the world in a few months and bring competitive pricing. With the new car and the EX90, Volvo Cars will cover the premium EV segment as well as the entry-level premium segment. it
