Volkswagen Q3 2024 $VOW (+0,66%)

Financial performance

Revenue: The Volkswagen Group reported revenue of €237.3 billion for the first nine months of 2024, a slight increase of 0.9% compared to the previous year.

Operating result: Operating profit fell to €12.9 billion, compared to €16.2 billion in the same period of 2023, a decrease of 21%.

Operating margin: The operating margin fell from 6.9% in the previous year to 5.4%.

Balance sheet overview

Total assets: As at September 30, 2024, total assets amounted to EUR 631.4 billion, an increase of 5.2% compared to the end of 2023.

Equity: The Group's equity remained stable at EUR 191.6 billion, with an equity ratio of 30.4 %.

Earnings situation by segment

Turnover by segment: The Passenger Cars and Light Commercial Vehicles segments generated sales of 159.2 billion euros, while Commercial Vehicles contributed 33.4 billion euros.

Operating result by segment: The operating result for passenger cars and light commercial vehicles amounted to 8.7 billion euros, while the commercial vehicles segment generated 3.1 billion euros.

Cash flow overview

Net cash flow: The Automotive Division's net cash flow amounted to 3.3 billion euros, a decrease of 1.7 billion euros compared to the previous year.

Cash and cash equivalents: As at September 30, 2024, the Group reported cash and cash equivalents of EUR 51.4 billion.

Key figures and profitability

Cash conversion ratio (CCR): The CCR was 31% in the first nine months of 2024, compared to 37% in the same period of 2023.

Capex ratio in the Automotive division: The capex ratio rose to 5.0%, indicating increased investment in production facilities and new models.

Segment information

Core brand group: Sales amounted to 101.5 billion euros, with an operating result of 4.5 billion euros.

Trucks brand group (TRATON): Turnover increased by 3% to 34.3 billion euros, with an operating margin of 9.1%.

Competitive position

Volkswagen continues to face challenges due to restructuring costs and ongoing problems in the supply chain, which are affecting the Group's competitiveness in the automotive industry.

Forecasts and management commentary

The Group has raised its forecast for vehicle deliveries to around 9 million units and expects sales of around EUR 320 billion for the full year 2024.

Risks and opportunities

The risk situation has intensified due to macroeconomic conditions, and ongoing legal proceedings in connection with the diesel issue remain a burden.

Summary

The Volkswagen Group's financial performance in the first nine months of 2024 shows some resilience in sales despite declining operating results and margins. The Group faces restructuring and supply chain challenges but has a stable balance sheet. The forecast for the year as a whole remains optimistic, with expected growth in sales and vehicle deliveries. Nevertheless, legal risks and macroeconomic uncertainties remain a challenge.

Five positive aspects

Stability of sales revenue: The Volkswagen Group generated sales revenue of €237.3 billion in the first nine months of 2024, a slight increase of 0.9% compared to the previous year. This underlines its resilience in maintaining sales despite challenging market conditions

Strong performance in the commercial vehicle segment: The Trucks brand group (TRATON) reported a 3% increase in sales to €34.3 billion with an operating margin of 9.1%, indicating a solid performance in this segment.

Investments in future technologies: The increase in the capex ratio to 5.0% demonstrates Volkswagen's commitment to production facilities and new models, a crucial step for future growth and competitiveness.

Positive cash flow from financing activities: The Group generated cash flow of €15.8 billion from financing activities, indicating sound financial management and the ability to raise capital effectively.

Market position of the core brand group: The core brand group maintained stable sales of €101.5 billion, underlining the strength and consistency of Volkswagen's core brands.

Five negative aspects

Decline in operating profit: Operating profit fell to €12.9 billion, compared to €16.2 billion in the same period in 2023, a significant decrease of 21%, which could impact profitability.

Reduced operating margin: The operating margin fell from 6.9% in the previous year to 5.4%, indicating pressure in terms of profitability and efficiency.

Challenges in the Passenger Cars segment: The Passenger Cars segment reported a decline in operating profit to €7.3 billion from €10.3 billion previously, indicating difficulties in this important area.

Increased liabilities: Long-term liabilities increased to €92.0 billion, compared to €86.9 billion at the end of 2023, which could weigh on the company's debt and financial stability.

Legal and macroeconomic risks: Ongoing legal proceedings related to the diesel issue and increased macroeconomic risks pose significant challenges to Volkswagen's operational and financial outlook.