Porsche profits soared by 27% in 2021.
A few days ago, Porsche, a luxury brand car company, announced its 2021 fiscal year performance report. According to the data, in the 2021 fiscal year, Porsche's operating income reached 33.1 billion euros, an increase of 15% year-on-year; sales profit reached 5.3 billion euros, a 27% increase in capital year-on-year. At the same time, Porsche also generated a return on sales of 16%, higher than the long-term strategic target of 15%, and hit record highs in both operating income and sales profit.
In addition, in terms of cash flow, the net cash flow of the automotive sector also grew strongly, with Porsche's net cash flow reaching 3.7 billion euros in the 2021 fiscal year, an increase of 67% year-on-year.
It is reported that the excellent performance is mainly due to the "2025 profit plan", which makes Porsche further improve its profit efficiency. Previously, Porsche had received more than 3,000 specific proposals from its employees, many of which had already been adopted. Porsche said that the plan is not simply cost control, but to develop new business ideas and increase profitability for the innovation of the entire company's process. Judging from the performance of the 2021 fiscal year, the plan is being smoothly promoted and has achieved more significant results.
At the same time, Porsche's sales in 2021 also set a new record. Over the past year, Porsche delivered 301915 new cars worldwide, up 11% year-on-year. It is worth mentioning that all major sales markets have made positive contributions to this.
Among them, the Chinese market still ranks as Porsche's largest single market in the world, with new car deliveries reaching 95,671 units, an increase of 8% year-on-year, accounting for 31.69% of the world' total.
By model, Porsche's first pure electric sports car, the Taycan, is selling well around the world, delivering 41,296 new cars in 2021, more than doubling the year-on-year growth compared with 2020. The Macan became Porsche's best-selling model, delivering 88,362 units worldwide in 2021, up 13% year-on-year.
In the performance report, Porsche also announced that it will increase the offensive process of electrification products. By 2025, half of Porsche's global deliveries of new vehicles are expected to be electrified (both electric and hybrid); by 2030, pure electric vehicles are expected to account for more than 80% of new car deliveries.
At the same time, Porsche has earmarked 15 billion euros for electric mobility and digital transformation by 2025. In Europe, Porsche will also have its own charging infrastructure, with the first sites already confirmed in Germany, Austria and Switzerland.
Affected by the repeated impact of the epidemic, all car companies have realized the importance of supply chains for the delivery of new cars. Porsche has invested in a number of upstream suppliers, with Cellforce developing new high-performance batteries scheduled for production in 2024 and Porsche Werkzeugbau producing battery modules in Slovakia and planning to start construction in mid-2023.
In the future, Porsche will also set its long-term strategic goal at a return on sales of at least 15% per annum and promote transformation in line with Strategy 2030, strengthening the principles of sustainability and customer orientation and maintaining high profitability. However, based on the current state of the global situation, Porsche also acknowledges that it is too early to predict delivery and business data in 2022, and the extent to which these goals can be achieved will still depend on many external challenges that are not controlled by manpower.
Regarding the IPO, Maxig, Vice Chairman of the Executive Board of Porsche Worldwide, said that the Volkswagen Group is welcome to study the possibility of a Porsche IPO listing. He believes that through an IPO, Porsche can further enhance its brand image and increase the freedom of the company. In addition, in the IPO process, if Volkswagen wants to fully integrate Porsche, then the holding and income statement transfer agreement will also be terminated, Volkswagen will benefit from its listing, and further accelerate the transformation process of the group.