Volkswagen Group Reports Revenue Growth in Q2 2023

Volkswagen Group, the renowned German car maker, announced higher revenue but lower aftertax earnings for the second quarter of 2023. Despite this, the company remains optimistic about its long-term outlook.

Financial Performance

In terms of aftertax profit, Volkswagen recorded 3.79 billion euros ($4.20 billion) for Q2 2023, compared to 3.91 billion euros in the same period last year. However, pretax earnings increased to 5.45 billion euros from 5.14 billion euros, while revenue saw a substantial rise to 80.06 billion euros, up from 69.50 billion euros.

Additionally, the operating profit surged to 5.60 billion euros, marking a significant year-over-year increase of 4.49 billion euros. Notably, the company achieved an impressive margin of 7% in Q2 2023, compared to 6.8% in Q2 2022.

Outlook and Targets

Volkswagen maintains its guidance for the full year, although it has slightly adjusted its deliveries target. The company now aims to deliver between 9 million and 9.5 million vehicles, down from the previous goal of 9.5 million. Nevertheless, Volkswagen remains focused on achieving revenue growth ranging from 10% to 15% and an operating return on sales between 7.5% and 8.5%.

Remaining Challenges

Volkswagen acknowledges the ongoing supply chain disruptions and their changing dynamics in the first half of 2023. While semiconductor shortages have improved, transportation and logistics delays have emerged as new obstacles. However, the company is optimistic that the second half of the year will benefit from lower raw material costs and gradual improvements in logistical efficiency.