Volkswagen Q3 Preliminary Sales Revenue Up 12%; Updates FY Operating Result Outlook
Volkswagen Group (VKW.L,VLKAF.PK,VOW.BE) reported that its third quarter preliminary group sales revenue increased by 12 percent to around 78.8 billion euros. Operating result came in at around 4.9 billion euros. The operating return on sales was around 6.2 percent.
Net cash flow in the Automotive Division in third quarter of 2023 was around 2.5 billion euros compared to 3.3 billion euros in the prior year. Net cash flow was held back by cash outflows from tax payments for past assessment periods of around -1.5 billion euros. Net liquidity in the Automotive Division at September 30, 2023 was around 36.7 billion euros.
Volkswagen updated its forecast for fiscal year 2023. The company continues to anticipate that deliveries to customers will stand between 9 and 9.5 million vehicles. Volkswagen continues to expect Group sales revenue to be 10 to 15 percent higher than the prior-year figure.
The further development of the commodity markets remains unpredictable. With regard to the effects of the fair value remeasurement of hedging transactions outside hedge accounting on operating result, from today’s perspective the company does no longer expect to be able to compensate for the effects of -2.5 billion euros accounted for in the first nine months by the end of the year.
As a result, the company now expects operating result for the full year 2023 to be around the level of the previous year before special items, which was around 22.5 billion euros. The forecast includes the effects of the fair value remeasurement of hedging instruments accumulated in the first nine months of the year. Previously, it was expected that annual operating return on sales to be between 7.5 and 8.5 percent.
Volkswagen continues to anticipate a significant to strong year-on-year increase in net cash flow of the Automotive Division. Net liquidity in the Automotive Division is still expected to be between 35 billion euros and 40 billion euros.
The company will publish full report on the interim financial statements as of September 30, 2023 on October 26, 2023.
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