Porsche AG Reports First Quarter Results Amidst Major Product Launches

Porsche AG has announced its financial outcomes for the first quarter of 2024, revealing a period of intense activity due to the launch of several new vehicle models. In this quarter, the sports car maker initiated the introduction of the third generation Panamera and the new Taycan, contributing to an expected decrease in both sales and earnings. By the end of the quarter, the company's group sales revenue was reported at 9.01 billion euros compared to 10.10 billion euros in the previous year, with a group operating profit of 1.28 billion euros from 1.84 billion euros a year ago. The group operating return on sales was marked at 14.2 percent, down from 18.2 percent during the same period last year.

Charge Lutz Meschke, Porsche’s Deputy Chairman, emphasized the company’s investment in innovation and digitalization despite the declines. He credited the financial retraction to extensive expenditures in research and development, and marketing related to the product launches. The quarter also witnessed a significant rise in the company's inventory levels due to new launches, contributing heavily to financial figures.

Despite the mixed financial results, Porsche remains committed to its strategic product renewals, targeting four out of its six major model lines this year. These endeavors are expected to provide long-term benefits to the company, maintaining optimism for meeting annual projected operational returns on sales of 15 to 17 percent and stabilizing up to 19 percent medium-term. Further, vehicle deliveries within this quarter summed up to 77,640, slightly down by 3.9% from the previous year, affected marginally by strategic initiatives and global economic challenges.