New Delhi:
German automotive manufacturer Audi Group today reported that its revenues increased by 2% to EUR 29.9 billion, and its operating profit reached a new high of EUR 4.9 billion. At 16.5%, the operating margin was well above the previous year and above the strategic target corridor of 9 to 11%. Earnings were driven by the good price position, the solid operating performance of the Lamborghini and Bentley luxury brands, and support from raw material hedging.The financial result in the year’s first half was EUR754 (2021: 762) million. This result includes the lion’s share of the business in China, which amounted to EUR431 (2021: 565) million, lower than the previous year. The decline is a consequence of the COVID-19 lockdowns in China in the second quarter.
“Our financial performance in the first six months of 2022 shows just how strong and profitable our brand group is. Despite the challenging economic and geopolitical environment, we were able to increase revenue and returns significantly,” said Markus Duesmann, Chairman of the Board of Management, AUDI AG. “At the same time, the current situation in the world makes it clear that economies and society need to move away from fossil fuels even quicker. Expanding renewable energies and switching to e-mobility are important steps in this direction. That’s why we’re on the right track with our strategic focus on e-mobility and carbon-neutral production.”
Against the backdrop of the challenging supply situation, the Premium brand group delivered 797,587 cars to customers in the first six months (2021: 986,567). Compared to record deliveries in the first half of 2021, deliveries of Audi brand automobiles fell by 20% to 785,099 (2021: 981,681).
However, Ducati delivered 33,265 (2021: 34,515) motorcycles. The decline of 3.6% compared to the strong previous year reflects semiconductor availability. With 5,090 (2021: 4,852) vehicles delivered, Lamborghini recorded an increase of 4.9%, while the British brand Bentley – the newest member of the brand group – sold 7,398 (2021: 7,199)* vehicles.
The Audi brand increased the number of all-electric vehicles delivered to 50,033 (2021: 32,775) – an increase of 52.7% over the previous year. The Audi e-tron remained particularly popular with customers but the Audi Q4 e-tron recorded the highest growth. Against this backdrop, the share of all-electric vehicles delivered by the brand group increased to 6.3%.
ELECTRIFICATION PLANS
With the successful rollout of the Audi charging hub, Audi is showcasing a solution for fast and uncomplicated electric vehicle charging in urban areas.The feedback from customers on the launch of the pilot site in Nuremberg is extremely positive, with a hub in Salzburg and other locations to follow in the course of 2022,” added Hildegard Wortmann, Member of the Board of Management for Sales and Marketing. Three additional sites in German metropolises will help meet the increased charging demands in urban spaces starting in 2023.
Moreover, Audi is planning to open even more sites in German cities by mid-2024. Another milestone in the electrification strategy was the cornerstone laid for the smart factory for electric models at the Changchun site at the end of June. Following completion at the end of 2024, models based on Premium Platform Electric (PPE) will be rolled off the line for the Chinese market via sustainable and digitally connected production. The 150-hectare plant will have an annual production capacity of more than 150,000 vehicles.
For the first half of 2022, the Audi Group recorded a new high of EUR 4,933 (2021: 3,113) million in operating profit, an increase of 58.5%. Operating margins climbed to 16.5% (2021:10.7%).
In addition to the good price position and strong operating performance of the Lamborghini, Bentley, and Ducati brands, the operating profit includes positive effects from commodity hedges totaling EUR 0.4 billion. Following a significant tailwind during the first quarter (EUR 1.2 billion), the impact has eroded substantially.
“The significant increase in the operating profit and the operating return on sales in the first half of 2022 way above the strategically defined target corridor of 9 to 11% shows that we have mastered the turbulence well and systematically seized the opportunities at the same time,” said Jürgen Rittersberger, Member of the Board of Management for Finance and Legal Affairs, AUDI AG.
Lamborghini
The Lamborghini brand increased its sales in the first half of the year by 30.6% to EUR 1,332 (2021: 1,020) million. The brand’s operating profit increased by 69.3% to EUR 425 (2021: 251) million, with a margin of 31.9% (2021: 24.6%).
Bentley
Bentley achieved revenues of EUR 1,707 (2021:1,324)* million while operating profit increased to EUR398 (2021: 178)* million to a new record high. The margin was 23.3% (2021: 13.4%).
Ducati
A strong price position offset Ducati’s declining delivery figures. The motorcycle brand increased its revenue by 5.4% to EUR 542 (2021: 514) million, generating an operating profit of EUR 68 (2021: 59) million – corresponding to an operating margin of 12.6% (2021: 11.5%).
OUTLOOK
The brand group expects deliveries of between 1.8 and 1.9 million vehicles and revenues of between EUR 62 and EUR 65 billion for the full year 2022. The operating margin is forecast to be between 9 and 11%. Net cash flow is expected to reach between EUR 4.5 and EUR 5.5 billion.
Audi anticipates a CapEx ratio of between 4 and 5%. Due to higher upfront expenditure on future technologies, the proportion of research and development costs is now expected to be slightly above the 6 to 7% corridor.
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Group revenue rose by 7% to EUR 36.4 billion and adjusted EBIT increased by 8% to EUR 4.9 billion as the company’s focus on Top-End Luxury vehicles, battery electric vehicles (BEV) and premium vans as well as a relentless focus on costs, helped to offset lower sales and higher raw material costs.
