Porsche is preparing to introduce some major changes to its lineup, including a new generation of all-electric Boxster and Cayman sports cars. But one thing that hasn’t changed is its ability to print money. The automaker just posted its financial results for the first quarter of 2023 and the numbers reveal that profit jumped by 25.5 percent over the same period last year.
An 18 percent increase in deliveries from 68,426 in the first three months of a supply-restricted 2022 to 80,767 in the first part of 2023 helped lift sales revenue from €8.04 billion ($8.8 bn) to €10.1 billion ($11.1 bn), and operating profit from €1.47 billion ($1.6 bn) to €1.84 billion (€2 bn). The Porsche Group return on sales of 18.2 percent was unchanged from last year, but Porsche finance chief Lutz Meschke says the firm is targeting a 20 percent return in the long term. Porsche put the strong results down to a number of factors including ‘positive’ pricing.
“Our sports car brand is celebrating its 75th anniversary this year and we are stronger positioned than ever before,” said Porsche and VW Group CEO Oliver Blume. “Our products are highly sought-after by customers around the world. Our business model is flexible and robust – even in a challenging market environment. This can be credited to the entire Porsche team.”
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But while global economic gloom might not have reduced the number of people feeling wealthy enough to splash out on a new Porsche SUV or sports car, the new figures did confirm that recent financial turmoil has affected parts of the business. Inflation-related rises in interest rates contributed to a reduction in the share of leased and financed vehicles from 45.7 percent in Jan-March last year to 41.5 percent this year. Porsche Financial Services’ operating profit fell from €102 million ($112 m) to €86 million ($94 m), even as sales revenue rose by €27 million ($30m) to €803 million ($882 m).
Despite the news about overall profits have soared, Porsche’s share price remains at its lowest point ever. The company floated in September 2022 and stock is currently worth €49.39 ($54.23), down from a high of €59.76 ($65.62) in March.