Based on preliminary figures, the Volkswagen Group recorded the following development of key financial indicators in Q3 2023 and the first nine months 2023:
Group sales revenue improved by 12 percent to around EUR 78.8 billion in Q3 2023. Operating result came in at around EUR 4.9 billion. The operating return on sales was around 6.2 percent. The fair value measurement of hedging instruments outside hedge accounting had no noteworthy impact on quarterly earnings (previous year: EUR -0.1 billion). Operating results in the Passenger Cars business area benefited amongst other factors from significantly higher volumes. Counteracting effects in particular resulted from a production shortfall of a supplier as a consequence of the flooding in Slovenia and increased product costs, especially at Brand Group Core.
Based on preliminary figures, net cash flow in the Automotive Division in Q3 2023 was around EUR 2.5 billion (Q3 2022: around EUR 3.3 billion). Net cash flow was held back by cash outflows from tax payments for past assessment periods of EUR -1.5 billion. Net liquidity in the Automotive Division at September 30, 2023 was around EUR 36.7 billion.
In the nine-month period, Group sales revenue increased by around 16 percent to approximately EUR 235.1 billion. Operating profit was around EUR 16.2 billion, corresponding to an operating return on sales of 6.9 percent. This includes effects from the fair value measurement of hedging instruments outside hedge accounting amounting to EUR -2.5 billion. Excluding these non-cash effects, operating profit would have been EUR 18.7 billion and the operating return on sales 8.0 percent. Net cash flow in the Automotive Division after nine months was around EUR 4.9 billion.
Volkswagen AG is updating its forecast for fiscal year 2023 as follows: 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 EUR -2.5 billion 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 EUR 22.5 billion (previously: operating return on sales between 7.5 and 8.5 percent). This forecast includes the effects of the fair value remeasurement of hedging instruments accumulated in the first nine months of the year. Volkswagen AG 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 EUR 35 billion and EUR 40 billion.
The full report on the interim financial statements as of September 30, 2023 will be published on October 26, 2023. Definitions of operating profit, net cash flow and net liquidity can be found on pages 107 et seqq. of the 2022 Annual Report.
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