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Volkswagen: Quarterly Results/2023 Q4: Difference between revisions
Volkswagen: Quarterly Results/2023 Q4 (view source)
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Return to: [[Earnings Season]] | Return to: [[Earnings Season]] | [[Volkswagen:Quarterly Results|Volkswagen: Quarterly Results]] | ||
== Results == | |||
* Volkswagen’s Q4 2023 revenue rose by 14.5% y/y to 87.2 billion euros, above analysts' estimate of 81.8 billion euros (+7.2%) and management's upper guidance of 85.9 billion euros (+10%) while its operating margin was 7.3% above analysts’ estimate of 7.05%. | |||
* Volkswagen is guiding 2024 revenue to grow by 5% y/y to 338.4 billion euros, above analysts’ estimate of 317.1 billion euros (-1.6% y/y) and operating margin to range between 7% and 7.5% (analysts’ estimate: 6.9%, 2023:7.0%). | |||
* The company is also guiding 2024 automotive net cashflow of between EUR 4.5 and EUR 6.5 billion, the midpoint representing a decline of 48.6% y/y due to investments for the future and mergers and acquisitions for its battery business (2023: EUR 10.7 billion).<blockquote>"We are confident about 2024, despite the muted economic outlook and intense competition. On that basis, we will consistently drive the transformation of the Volkswagen Group forward. We expect a tailwind from a large number of new product launches, a positive trend in product costs and continued cost discipline. Our flexibility is our strength: we are continuing to invest in the electrification and digitalization of our product range, while simultaneously keeping our combustion vehicles competitive during the transition phase,” Arno Antlitz, CFO & COO of Volkswagen Group said<ref>https://www.volkswagen-group.com/en/press-releases/volkswagen-group-achieves-robust-annual-results-for-2023-with-a-strong-fourth-quarter-18250</ref>.</blockquote> | |||
** Volkswagen Group said<ref>https://www.volkswagen-group.com/en/press-releases/volkswagen-group-delivers-robust-2023-results-performance-programs-and-record-number-of-new-product-launches-stabilize-future-development-18279</ref> it expects its order book in Western Europe to pick up speed in the coming months compared to the previous year due to a number of new product launches. | |||
** The company said it has successfully launched its all-electric premium platform (PPE). | |||
** It added that the operating margin of its Brand Group Core improved to 5.3% from 3.6% in 2022, representing an addition of more than 3 billion euros in operating profit before special items, mainly due to the strong increase in sales (+21% y/y). | |||
** The operating margin of its Brand Group Progressive (Audi, Lamborghini, Bentley, Ducati) fell to 9% from 12.3% due to valuation effects associated with commodity hedging of -1.4 billion euros. Adjusted operating margin rose to 11% from 10.6%. | |||
** Financial services operating profit was 3.8 billion euros, a third of the previous year’s level due to the normalisation of used car prices. | |||
== Competitor Results and Expectations == | == Competitor Results and Expectations == | ||
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* Tesla missed revenue and earnings estimates<ref>https://finance.yahoo.com/news/tesla-stock-drops-on-q4-earnings-miss-warns-production-growth-rate-will-be-notably-lower-than-2023-212357382.html</ref>.<ref>https://www.teslarati.com/tesla-tsla-q4-fy-2023-earnings-results-update-letter/</ref><ref>https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q4-2023-Update.pdf</ref> | * Tesla missed revenue and earnings estimates<ref>https://finance.yahoo.com/news/tesla-stock-drops-on-q4-earnings-miss-warns-production-growth-rate-will-be-notably-lower-than-2023-212357382.html</ref>.<ref>https://www.teslarati.com/tesla-tsla-q4-fy-2023-earnings-results-update-letter/</ref><ref>https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q4-2023-Update.pdf</ref> | ||
* In the earnings call, Elon Musk said, "Our observation is generally that the Chinese car companies are the most competitive car companies in the world. So I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established. Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world."<ref>https://seekingalpha.com/article/4664834-tesla-inc-tsla-q4-2023-earnings-call-transcript</ref> | * In the earnings call, Elon Musk said, "Our observation is generally that the Chinese car companies are the most competitive car companies in the world. So I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established. Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world."<ref>https://seekingalpha.com/article/4664834-tesla-inc-tsla-q4-2023-earnings-call-transcript</ref> | ||
* Net income was impacted a number of factors including reduced vehicle | * Net income was impacted a number of factors including reduced vehicle average selling price (ASP) due to pricing and mix, increased in operating expenses and the cost of the Cybertuck production ramp<ref>https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q4-2023-Update.pdf</ref>. | ||
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