Status: 07/18/2022 4:28 p.m
The VW Group plans to list Porsche AG on the stock exchange before the end of this year. The sports car manufacturer now described to investors how he intends to significantly increase sales, profits and returns.
The sports car manufacturer Porsche wants to significantly increase its profitability. Last year, Porsche’s margin was 16 percent, this year it should be 17 to 18 percent. With a targeted growth from 33 to 38 to 39 billion euros in sales, this would correspond to an operating result for 2022 of around seven billion euros.
But Porsche doesn’t want to leave it at that. In the coming years, sales are expected to grow by an average of seven to eight percent a year. The margin should reach 17 to 19 percent. In the long term, the Volkswagen subsidiary is aiming for an operating return before interest and taxes of 20 percent of sales. CFO Lutz Meschke said this at an investor event.
Good business thanks to many rich customers
In order to achieve the improvements in earnings, the group is also increasingly relying on all-electric models. Here Meschke sees even better opportunities for the sales price than with combustion engines. Porsche plans to make 80 percent of its sales purely electric by the end of the decade.
Porsche boss Oliver Blume also expects good business in the coming years, thanks above all to an increasing number of very rich people worldwide. “Quantities were never the driving force for us,” emphasized Blume. “They are the result of a successful product strategy.” For this purpose, among other things, a third off-road vehicle series is planned, which is located above the Porsche “Cayenne”.
Porsche only wants to compare itself to a limited extent with the Italian luxury sports car manufacturer Ferrari, which is highly rated on the stock exchange. With around 300,000 cars sold, Porsche is not a niche supplier, unlike the Italians. “We combine luxury with economies of scale. That makes us unique,” said Blume.
80 billion euros enterprise value?
Porsche is to be listed on the stock exchange by the VW group before the end of this year. A listing in the fourth quarter is currently planned. Among other things, Porsche wants to use the proceeds to finance its electric car strategy. The final decision on an IPO is still pending, said Blume. Volkswagen will comment on this in the coming weeks. Negotiations are still ongoing about future industrial cooperation with Volkswagen, from which Porsche is benefiting greatly. Porsche AG is considered the most valuable part of the VW Group. Analysts estimated it at more than 80 billion euros.