Luxury automaker Porsche AG has announced its ambitious long-term outlook of over 20% of return on sales, after its impressive 2022 earnings on the back of higher deliveries.
The German carmaker which specializes in manufacturing high-performance sports cars updated its operating profit increased by 27% to 6.77 billion euros ($7.23 billion) last year, when deliveries surged by 2.6% to 309,884 vehicles.
Oliver Blume, CEO of Porsche told that the year 2022 has been a very successful year with record sales, operating profits, revenue, and an 18% profit margin.
Oliver said, “Looking back over the last year, I think the main effects we had were a very positive product mix, our cost work is very, very efficient and on the other side, we had currency effects at the end to come to such a positive result.”
“Pricing is important for Porsche and because of our luxury positioning, we are able to go to a very positive pricing level. We are increasing prices continuously, we are not jumping up and down, and have a very clear pricing strategy.”
Luke Meschke, deputy chairman and member of the executive board for finance and IT, said “Should the economically challenging conditions not further intensify significantly, we expect a Group operating return on sales for the 2023 financial year in the range of 17 to 19 percent.” Porsche is proposing a dividend of 1.01 euros per preferred share and 1 euro per ordinary share and 1.01 euros per preferred share. It has issued ongoing growth guidance on both the long-term and medium-term respectively.
Porsche is a substantial portion of revenues for Volkswagen Group and overtook Volkswagen as Europe’s most valuable carmaker during its first week on the German stock market. Volkswagen owns 75% minus one ordinary share in the Porsche’s total share capital.