Audi Group Achieves Profit Growth in 2023 Fiscal Year with Over 20 New Models Planned Within Two Years

Reported by Pulsestack on March 20, 2024, Ingolstadt/Neckarsulm — Despite facing a challenging market environment, Audi Group demonstrated solid development in the 2023 fiscal year, with a 13.1% increase in sales revenue, reaching €69.9 billion. Operating profit stood at €6.3 billion, with an operating profit margin of 9%. Net cash flow remained nearly stable compared to the previous year, reaching €4.7 billion. In the coming years, Audi aims to strengthen and diversify its product portfolio further by introducing numerous new models. With the global debut of the Audi Q6 e-tron, the first electric vehicle based on the all-new PPE luxury electric platform, Audi officially kicked off its product offensive, planning to launch over 20 new models between 2024 and 2025. Audi Group 2023 Financial Overview

Key Highlights:

• Audi CEO Gernot Döllner: "We are preparing for the future in terms of profitability, technology, and strategy. The Audi Q6 e-tron demonstrates another technological leap for Audi in leading high-end electric mobility."
• Audi CFO Jürgen Rittersberger: "In the face of technological change and intensified market competition, Audi's strong financial position ensures the continuous success of our business."
• Sales revenue increased to €69.9 billion, operating profit reached €6.3 billion, and net cash flow remained almost unchanged from last year, reaching €4.7 billion. Audi's CEO, Gernot Döllner, states, "We are preparing for the future in terms of profitability, technology, and strategy, pushing new products into the market one after another. This action is based on a binding future plan, focusing on financial performance, excellent products, and a flexible and agile organizational structure. With this plan, we aim to accelerate transformational growth in challenging market environments."

Key Focus:

• Delivery Volume: Achieving growth in all core markets. The outstanding performance of the Audi Group owes much to the remarkable contributions of its brands: Audi, Bentley, Lamborghini, and Ducati. In the fiscal year 2023, the Audi Group delivered a total of 1,918,912 vehicles to customers (compared to 1,638,638 vehicles in fiscal year 2022) and 58,224 motorcycles (compared to 61,562 motorcycles in fiscal year 2022). Thanks to strong market demand and improved supply conditions, the Audi brand delivered a total of 1,895,240 vehicles to customers, marking a year-on-year increase of 17.4%.

Strong growth was achieved by Audi in core markets such as Europe, China, and North America. To ensure long-term competitiveness, Audi is currently optimizing its development strategies for each regional market, including launching more products tailored to specific markets, especially in China.

Starting from the end of 2024, electric vehicles optimized for the Chinese market will be officially produced at the Audi FAW New Energy Vehicle Company Limited in Changchun. This joint venture is created by Audi and its partner, FAW Group, to cater specifically to the Chinese market.

· Strong growth achieved by electric vehicles once again In 2023, Audi Group's delivery of pure electric vehicles once again saw strong growth, reaching 178,429 units, a significant increase of 51% compared to the previous year, showcasing the group's systematic transition towards being a leading player in intelligent and connected high-end electric mobility.

In 2024, Audi is taking a solid step towards the future of electric mobility: the PPE (Premium Platform Electric) luxury electric platform, developed jointly by Audi and Porsche, will serve as the technological foundation for the upcoming groundbreaking electric vehicle models. It will cater to a wide range of models in the mid-size and luxury segments of the market. Audi Q6 e-tron

The all-new Audi Q6 e-tron is making its debut as Audi's first mass-produced model based on the PPE platform. As the flagship of Audi's new generation of electric vehicles, the Audi Q6 e-tron sets new standards in efficiency, range, charging, and design. It is equipped with the E3 1.2 electronic architecture, supporting updates and upgrades, and featuring a redesigned operating concept. This architecture is a crucial cornerstone for Audi's journey into the future of intelligent connected vehicles. The Audi Q6 e-tron is also the first Audi electric vehicle to be produced in Ingolstadt.

At the same time, Audi is driving the transition towards Software-Defined Vehicles (SDVs), focusing on providing software-based solutions and digital customer experiences. Audi has partnered with CARIAD, the software company under the Volkswagen Group, and Volkswagen Passenger Cars to launch the Software-Defined Vehicle Center, accelerating the transformation towards digitization. Technical experts at this center are researching the hardware, software, and electronic architecture of the next generation of electric vehicles.

• Sales Revenue Continues to Grow

In the 2023 fiscal year, Audi Group's sales revenue reached €69.865 billion (2022 fiscal year: €61.753 billion), an increase of 13.1% year-on-year. This is mainly attributed to robust sales performance, strong market demand, and a more stable supply market. The Audi Q4 e-tron, Audi Q3, Audi Q5, and Audi Q7 series of electric vehicles have been the main drivers of revenue growth. Revenue from vehicles compliant with the EU green classification increased to 16.3% (2022 fiscal year: 13.5%).

• Strong Operating Profit, Operating Margin within Target Range

Despite fluctuations in raw material hedging, Audi Group's operating profit reached €6.28 billion (2022 fiscal year: €7.55 billion). While this measure brought €800 million in profit returns in the 2022 fiscal year, it decreased operating profit by €900 million in the 2023 fiscal year. The operating margin for the 2023 fiscal year was 9.0%, within the target range.

• Outstanding Performance from Bentley, Lamborghini, and Ducati

The excellent financial performance of the Bentley, Lamborghini, and Ducati brands has positively contributed to Audi Group's robust performance. Lamborghini delivered 10,112 vehicles to customers in the 2023 fiscal year (2022 fiscal year: 9,233 vehicles), achieving a steady growth of 9.5%. Sales revenue reached €2.663 billion (2022 fiscal year: €2.375 billion), showing strong growth of 12.1%. The operating margin was 27.2%, with an operating profit of €723 million.

Bentley delivered 13,560 vehicles to customers in the 2023 fiscal year (2022 fiscal year: 15,174 vehicles). Sales revenue reached €2.938 billion (2022 fiscal year: €3.384 billion). The operating margin was 20.1%, with an operating profit of €589 million.

Ducati delivered 58,224 motorcycles to customers in the 2023 fiscal year, slightly down from the record-breaking 61,562 units in 2022. Sales revenue was €1.065 billion, slightly lower than the strong performance of the previous year (2022 fiscal year: €1.089 billion). The operating margin was 10.5%, with an operating profit of €112 million.

• Solid Financial Performance, Net Cash Flow Remains Strong

In the 2023 fiscal year, Audi Group's financial income was €1.423 billion (2022 fiscal year: €1.522 billion), with the Chinese market contributing €915 million (2022: €1.153 billion). After-tax income was €6.26 billion (2022 fiscal year: €7.116 billion).

In the 2023 fiscal year, Audi Group's net cash flow reached €4.74 billion, remaining relatively stable compared to the strong performance of 2022 (2022 fiscal year: €4.808 billion).

• Outlook for the 2024 Fiscal Year Audi's CFO, Jürgen Rittersberger, emphasizes the importance of a robust financial position in laying the groundwork for the company's ongoing transformation in the coming years. This underpins the launch of the 'Performance Program 14', aimed at ensuring the group's profitability effectively. Looking ahead, Audi aims to achieve an operating sales margin of 14% for the Audi Group.

"Breaking through technology to inspire the future" once again becomes the core of the brand's philosophy, highlighting Audi's pioneering role in quality and design.

Overall, 2024 remains challenging, with the macroeconomic landscape still tough. Audi anticipates continued fierce competition in the market. Meanwhile, offering a flexible product portfolio is crucial to meet evolving market demands. To address this, Audi will simultaneously introduce pure electric and internal combustion engine models, preparing for the future ahead. Audi CEO Gerd Noack (left) Audi CFO Li Borui (right) With the economy maintaining a certain level of growth and stable supply of components, Audi Group expects sales revenue for the fiscal year 2024 to be in the range of 63 to 68 billion euros, with an operating profit margin projected to be between 8% and 10%, and net cash flow expected to range from 2.5 to 3.5 billion euros.