Admin I Wednesday, March 13, 2024
BERLIN – German car making giant Volkswagen recorded increased profits last year, benefiting from improvements in day-to-day business, the company said Wednesday.
Profit after tax rose from €15.8 billion ($17.3 billion) in the previous year to €17.9 billion, as the DAX-listed company announced in Berlin. This represents an increase of around 13%.
Europe’s largest car manufacturer had already presented the majority of its figures at the beginning of March. Thanks to a 12% increase in deliveries, turnover climbed at a rate of 15.5% to €322.3 billion.
Operating profit, on the other hand, rose by just over 2% to €22.6 billion. The Volkswagen Group had also already made a proposal for an increased dividend of €9.06 per preference share.
The group, with its core brands VW, Skoda, Seat and VW Commercial Vehicles, increased its return on sales from 3.6% to 5.3%, which was mainly due to the increase in sales, it said.
The business with the mass brands is not as profitable as chief executive Oliver Blume would like, which is why a multi-billion euro savings programme with job cuts is under way in this area.
By contrast, the group around the Audi car brand would have achieved a better margin in 2023 only without the costs of hedging raw materials. Cariad, the software division, increased its operating loss to €2.4 billion.
Financial Services performed weaker than in the record years before.
