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Volkswagen Group has reported a slight increase in full-year (Jan-Dec) 2024 sales revenue, which reached €324.7bn ($353.7bn), up from €322.3bn ($351.1bn) in the previous year.
This growth was attributed to a positive development in the financial services business.
Despite the increase, sales revenue in the automotive business saw a slight decrease to €265.9bn, mainly due to a reduction in volumes.
Volkswagen's Q4 2024 sales revenue reached €87.38bn compared to €87.18bn in Q4 2023.
The company's operating result for 2024 experienced a 15.4% decline to €19.1bn compared to €22.5bn in 2023.
This decrease was driven by a “significant” rise in fixed costs, including extraordinary expenses of €2.6bn, primarily for restructuring.
For Q4 2024, the operating result saw a decline of 2.1% to €6.15bn compared to the €6.28bn in the same period of the previous year.
Volkswagen's underlying operating result for 2024 stood at €21.7bn.
The firm’s automotive division's net cash flow was below the previous year, largely due to continued high investments and the decline in operating profit.
However, a solid net cash flow of €1.7bn was reported in Q4 2024, supported by a reduction in working capital.
Vehicle sales in North America and Europe remained at the previous year's level, with total vehicle sales for 2024 at 9.0 million units, a 3.5% decrease from 9.4 million units in 2023.
Q4 2024 also saw a minor drop in vehicle sales to 2.57 million units, compared to 2.60 million units in the same quarter of the previous year.
A significant increase in order intake for all-electric vehicles (EVs) in Western Europe was observed, with an 88% rise in FY 2024.
Looking ahead, Volkswagen expects sales revenue to exceed the previous year’s figure by up to 5%, with an operating return on sales for the Group projected to be between 5.5% 6.5%.
In its automotive division, the Group anticipates an investment ratio between 12% and 13% in 2025, with automotive net cash flow expected to be between €2bn and €5bn.
Net liquidity in the automotive division for 2025 is projected to be between €34bn and €37bn, as the Group aims to continue its robust financing and liquidity policy.
However, challenges are anticipated from political uncertainty, increasing trade restrictions, geopolitical tensions, intense competition, volatile commodity, energy and foreign exchange markets, and more stringent emissions-related requirements.
With an adjusted reporting logic, the investment ratio in the automotive division is expected to reduce to between 12% and 13% in 2025 and to around 10% by 2027.