For the financial year 2021, the Volkswagen group posted a net profit of up to 74.8%, up to more than 15 billion euros. For 2022, the manufacturer continues to be cautious because the impact of the war in Ukraine is still difficult to take into account.
VW Group’s revenue grew by 12.3% in 2021.
Despite global shipments falling by 4.5% to 8.88 million units, the Volkswagen Group presented a solid balance sheet for the fiscal year 2021. Net profit increased by 74.8% to 15.428 billion euros. However, sales increased by 12.3% (250.2 billion euros), mainly thanks to “best price” and savings on fixed costs of 4 billion euros compared to 2019.
“We have learned in the last two years to better compensate for the effects of conflict on our business“, noted the finance director Arno Antlitz in an online meeting. “Customers were ready to buy cars with better equipment“, so it is more expensive and”top brands fared better throughout the year“than cheap brands called “volume”, explains Arno Antlitz.
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In addition, Volkswagen was able to offer fewer discounts and focus on semiconductor sourcing in Europe at the expense of other less profitable regions, which also increased margins, he added. Against the backdrop of widespread decline, sales of electric vehicles alone have “almost twiceup to 452,900 units.
For 2022, the world’s second largest car group expects sales to increase between 5% and 10%, with the continued impact of chip shortages despite improvements”progressive“. Revenue growth should be between 8% and 13% for operating volume, an indicator closely followed by the market, between 7% and 8.5% compared to 7.7% in 2021 and 4.3% in 2020.
Sales up 5 to 10% in 2022
This prediction, however, will dependthe evolution of the war in Ukraine and its impact on supply chains and the global economy“, according to a press release.”It is still impossible to predict this outcome with certainty.“, according to Arno Antlitz.
The group had to temporarily interrupt production in several German locations, including part of its historic factory in Wolfsburg and Zwickau, its biggest producer of electric vehicles, due to a lack of supply from Ukraine. “We have many important cable suppliers in Ukraine“, explained the finance director.”We are working on strategies to turn to other suppliers in Eastern Europe or North Africa.”
Rising commodity prices too”have an impact on our business in the medium term“, according to the official. Despite the turmoil in the global stock market, preparations for the IPO “in the fourth quarter“from Porsche”are proceeding as planned“.”We hope to reach this window of opportunity“, confirmed Arno Antlitz. (with AFP)