Audi profit jumps by 14.4 percent despite less sales in Q1

 

BAVARIA – Although German carmaker Audi sold significantly more cars in the first half of the year, profits fell.

Sales climbed by 14.4% to €34.2 billion ($37.5 billion) compared to the same period last year, but the bottom line showed around a quarter lower profit of €3.3 billion, the Volkswagen subsidiary announced on Friday.

 

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Strongly negative effects from commodity hedging transactions played a role in the results. In addition, Audi benefited from increased used car prices a year ago, chief financial officer Jürgen Rittersberger explained.

Over the first six months of the year, sales – which also include the Bentley and Lamborghini brands – increased by 24% in Europe and by 30% in the United States. The important Chinese market, on the other hand, weakened with an increase of only 2%, after a problematic previous year.

The first quarter was also weak, but Audi managed to grow more strongly again in the second quarter with 20% – but only compared to the weak figures of the previous year, which were characterized by lockdowns.

“Overall, our first half-year went well,” said Rittersberger. However, he also admitted that the supply of electric vehicles in China is currently rather small. Audi is planning further models for China, he said. There is a price war in China which the company is feeling, but Audi is trying to stay out of it, Rittersberger said.

VW recently expressed dissatisfaction with the business of its subsidiary. A month ago, the company replaced the former Audi boss Markus Duesmann with Gernot Döllner.

In principle, Audi believes that it is well on the way to achieving a just under double-digit share of its own sales in the current year, with electric cars growing by some 50%. At the end of the year “the electric fireworks” will really start, said Rittersberger.

Audi largely confirmed its own forecast for the current year. However, the group expects slightly higher research and development costs.