Porsche posts record profit and sees no signs of slowing down

Porsche’s performance grew by 13% last year. As the sports carmaker managed revenue of 37,6 billion euros, it saw figures rising to a record high thanks to increasing demand and a growing interest for more exclusive personalized models. As a result, profit came in at 6.,8 billion euros.

Porsche sold 309 884 units last year. When every carmaker struggled to keep output leveled, often in a scenario of damage control, this represents a growth of 2,6% compared to the year before. One of the reasons why Porsche suffers less from constraints is that it can pay suppliers better, benefitting its position in the queue.

Emerging markets

Despite geopolitical constraints, the sports car manufacturer from Stuttgart experiences a high order intake, with the challenge to fulfill it rising. Therefore, cutting delivery times will be one of the top priorities this year.

The strongest growing region for Porsche is Asia, which also witnesses a growing interest from female drivers. These emerging markets and so-called ‘profit pools’ are the key drivers behind Porsche’s success.

Porsche CEO, Oliver Blume, looked ahead and said to Bloomberg that the company “confidently can look ahead, expecting an operating margin between 17 and 19%” for the upcoming year. The margin was 18% last year (2% higher than in 2021). Revenue for 2023 is projected to rise to between 40 and 42 billion euros.

K1 in 2027

Blume also referred to Porsche’s unique position as the only luxury manufacturer to benefit from certain “volume aspects”. Besides that, the German manager expected double-digit percentage growth from Porsche’s customization program and added that the plan is to increase the offers of the Exclusive Manufaktur.

During the presentation, Blume acknowledged that the company was working on the zero-emission K1 SUV. This seven-seater higher riding model will be positioned above the Cayenne when it arrives in 2027.

Of the latter, an all-electric version is also in the making. The first battery-powered SUV leaving the assembly line will be the Macan EV, but this model has been delayed because of software problems. It is scheduled for the end of this year.

Lower stock value

Because of the Californian bank crisis and analysts having projected even better figures, the announced record results didn’t reflect in the stock value of the company’s shares (the brand went partly public at the end of September last year in what was the biggest IPO for Europe in decades). As a result, buyers sent the value of the shares 4,5% lower.

Before this slide, the stock value proved resistant, never underscoring its set price of 82 dollars at launch. Not shy of a wink of irony, the company will issue a dividend of 911 million euros.

Yes, you know where that number comes from. Officially, Porsche is steered by Oliver Blume. But since he became the boss of the entire Volkswagen Group, the brand is led by its Financial Director, Lutz Meschke daily.