In This Article:
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Operating Profit: EUR5.6 billion.
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Return on Sales: 14.1%.
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Net Cash Flow: Almost at the level of record year 2023, with a cash conversion over 70%.
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Dividend Proposal: EUR2.31 per preference share.
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Average Selling Price (ASP): Increased from EUR112,000 to EUR117,000.
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Electrification Rate: 27% with a clear upward trend.
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Group Sales Revenue Forecast for 2025: EUR39 billion to EUR40 billion.
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Group Return on Sales Forecast for 2025: 10% to 12%.
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Automotive Net Cash Flow Margin Forecast for 2025: 7% to 9%.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dr. Ing. h.c. F. Porsche AG (DRPRF) achieved a solid operating profit of EUR5.6 billion in 2024, with a return on sales of 14.1%.
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The company set sales records in four out of five world regions, with strong performance from the 911 and Cayenne models.
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Porsche maintained a strong net cash flow, almost at the level of the record year 2023, with a cash conversion rate over 70%.
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The company has a robust and attractive product portfolio, having renewed five of six model series, which has been well-received by customers and media.
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Porsche is committed to its long-term strategy of delivering more than 80% full electric sports cars by 2030, despite current market challenges.
Negative Points
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The company faces significant challenges in China due to structural market changes, impacting long-term sales prospects.
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The ramp-up of electromobility has been slower than expected, necessitating adjustments in product strategy.
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Supply chain tensions continue to pose challenges, affecting costs and product availability.
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Porsche anticipates vehicle sales to be below 2024 levels, with a forecasted revenue of EUR39 billion to EUR40 billion for 2025.
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The company expects additional costs in the supplier area due to delivery delays, unit fluctuations, and potential insolvencies.
Q & A Highlights
Q: Can you walk us through the midterm guide and how you plan to achieve it? Is there a chance to reach this before the typical three to five years? A: (Jochen Breckner, Member of the Executive Board, Finance and IT) The midterm guidance of 15% to 17% return on sales has been adjusted due to market pressures, particularly in China and slower electrification. We are focusing on cost reductions and strategic investments to achieve this target. The Road to 20 program will help us improve profitability through cost scrutiny and strategic pricing.
Q: What is Porsche's strategy regarding new products and potential tariffs? A: (Oliver Blume, Chairman of the Executive Board) We are expanding our product portfolio with new models, including a potential new SUV and hypercar. In terms of tariffs, we support free trade and would initially look at pricing adjustments to mitigate impacts. Local production is not currently planned, but we remain flexible depending on tariff developments.