ŠKODA AUTO achieved a stable return on sales of 5.6% and an operating profit of €856 million (-4.9% year-on-year) for the first three quarters of 2022, despite a challenging market environment. This indicates that the measures provided for in the consistently implemented program of improvement of efficiency are producing results. Due to a large order backlog and a sharp increase in deliveries in the important growth market of India (+186.9%), ŠKODA AUTO also expects a very positive operating profit for the year as a whole. Deliveries from January to September totaled 544,500 vehicles. Behind the 22.3% year-on-year decline is ongoing supply tension due to global events; the war in Ukraine, a significant increase in prices for raw materials and energy, a permanent shortage of semiconductors and unstable supply chains strongly affected the quarterly results of the Czech automaker.

“Despite the current economic burden due to the war in Ukraine, rising prices for raw materials and energy, and fragile supply chains, we managed to achieve a stable return on sales of 5.6%. The basis for this was our comprehensive NEXT LEVEL EFFICIENCY+ program and stable high cost discipline. This confirms that ŠKODA is on solid financial footing. For the remainder of the year, we are focused on achieving a very positive operating profit.”

Christian Schenk, ŠKODA AUTO Board Member for Finance and IT

“Demand for ŠKODA cars remains high. We are now doing our best to continue processing the still high backlog. We also want to go forward with a very successful development in the Indian market: our deliveries to India have already exceeded the result of the previous year. We want to build on this and gain further momentum in this important emerging market.”

Martin Jan, ŠKODA AUTO Board Member for Sales and Marketing

Stable operating profit, return on sales slightly lower than the previous year

ŠKODA AUTO Group1)’s sales profit for the first three quarters of the year amounted to 15.2 billion euros, an increase of 13.9% compared to the previous year. However, due to the fact that Volkswagen Group Rus has been consolidated under ŠKODA AUTO since the beginning of the year, the main indicators cannot be compared with the same period last year. At the same time, the consolidation of Volkswagen Group Rus was a particular challenge for ŠKODA AUTO, negatively affecting operating profit in the triple-digit million range. However, it still managed to maintain a return on sales of 5.6% (2021: 6.8%) and operating profit remained stable at €856 million (-4.9% compared to the previous year). The company optimizes not only material costs, but also production and fixed costs in order to further stabilize operating profit for the year as a whole and maximize profit potential. At the same time, the automaker continues to expect production constraints due to existing bottlenecks in the supply of spare parts.

Infographic - ŠKODA AUTO achieves good Q3 results and stable sales profitability in challenging environment

ŠKODA AUTO Group1) – Quarterly comparison of key indicators from January to September 2021/20222):

2022 year 2021 year % change
Deliveries to customers cars 544,500 700 700 -22.3%
Deliveries to customers without China cars 508300 648,000 -21.6%
Production3) cars 647,200 578,200 11.9%
Sales4) cars 645,500 596100 8.3%
Sales revenue A million euros 15 181 13329 13.9%
Profit from the main activity A million euros 856 900 -4.9%
Profitability of sales % 5.6% 6.8%
Investments in tangible assets A million euros 605 337 79.5%
Net cash flow A million euros 830 321 158.6%

1) The ŠKODA AUTO Group includes ŠKODA AUTO as, ŠKODA AUTO Slovensko sro, ŠKODA AUTO Deutschland GmbH, ŠKODA AUTO Volkswagen India Private Ltd. and OOO VOLKSWAGEN Group Rus.
2) Percentage deviations are calculated from unrounded numbers.
3) Includes production within the ŠKODA AUTO group, excluding production at partner assembly plants in China, Slovakia and Germany, but includes other group brands such as SEAT, VW and AUDI; manufacture of automobiles except parts/kits.
4) Includes ŠKODA AUTO Group sales to distribution companies, including other group brands such as SEAT, VW, AUDI, PORSCHE and LAMBORGHINI; car sales excluding parts/kits

Worldwide deliveries in the first three quarters of the year by selected market region:

Market region Deliveries from January to September 2022
(Deliveries Q1-Q3 2021 / change in %)
Western Europe 281,100 vehicles (326,400 vehicles; -13.9%)
Germany (largest single market in the world) 100,700 vehicles (104,600 vehicles; -3.8%)
Central Europe 106,300 vehicles (132,600 vehicles; -19.9%)
Czech Republic (domestic market) 51,200 vehicles (63,000 vehicles; -18.7%)
Eastern Europe without Russia 23,300 vehicles (29,500 vehicles; -20.9%)
Russia 16,600 vehicles (72,600 vehicles; -77.2%)
China 36,300 vehicles (52,700 vehicles; -31.2%)
India 38,300 vehicles (13,300 vehicles; +186.9%)
Total (worldwide) 544,500 vehicles (700,700 vehicles; -22.3%)

Deliveries of the ŠKODA brand to customers in the first three quarters of 2022
(in units, rounded, listed by model; +/- as a percentage compared to the previous year):

ŠKODA OCTAVIA (106,800; -33.0%)
ŠKODA KAMIQ (73,100; -26.2%)
ŠKODA KODIAQ (71,300; -13.6%)
ŠKODA FABIA (69,800; -15.0%)
ŠKODA KAROQ (61,400; -36.5%)
ŠKODA SUPERB (45,200; -12.1%)
ŠKODA ENYAQ iV (36,900; +30.7%)
ŠKODA SCALA (29,700; -25.3%)
ŠKODA KUSHAQ (19,500; +286.8%)
SORRY SLAVIA (15,400; -)
ŠKODA RAPID (15300; -70.8%)

SOURCE: ŠKODA

https://www.automotiveworld.com/news-releases/skoda-auto-achieves-solid-q3-result-and-stable-return-on-sales-amid-challenging-environment/

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