Audi posts first-half profit despite falling sales

Audi posts first-half profit despite falling sales

German carmaker Audi reported an increase in operating profit, despite a decline in sales, for the first half of this year, according to figures released from its German headquarters in Ingolstadt on Friday. First-half operating profit reached a new record high of 4.9 billion euros, up 59% from the same period last year, as the company sold 20% of vehicles at lower prices, said CFO Jürgen Rittersberger. Profit after tax amounted to 4.4 billion euros.

One of the main reasons was the inclusion, for the first time, of figures from the luxury brand Bentley, which added almost 400 million euros to operating profit. Rising commodity prices also played a role, with demand outstripping supply, which saved dealers from offering discounts.

The Volkswagen subsidiary delivered 798,000 vehicles in the first half of 2022, and its sales increased by 2% to reach 29.9 billion euros.

Management expects a slight increase in unit sales for the year, between 1.8 and 1.9 million vehicles, and a significant increase in sales, between 62 and 65 billion euros.

The sales rate should be between 9% and 11% per year, after a figure of 16.5% for the first half. Mr. Rittersberger attributed the decline to unique products, including supply disruptions, increased research and development costs, and how the company calculates its profits in China.