Porsche Reports An Operating Result Of 2.79 Billion Euros In First Half Of 2021

Between January and June 2021, the company achieved sales revenues of 16.53 billion euros, along with an operating result of 2.79 billion euros, while the return on sales was 16.9 per cent.

By Seshan Vijayraghvan

1 mins read

Published on July 30, 2021

Highlights

Porsche more than doubled its operating result in H1 2021
The strong growth against H1 2020 was mainly an effect of COVID-19
Porsche's H1 operating profit grew 26% against what it achieved in 2019

German luxury sports car maker, Porsche has released the financial results for the first half (H1) of the 2021 calendar year. Between January and June 2021, the company achieved sales revenues of 16.53 billion euros, along with an operating result of 2.79 billion euros. The return on sales was 16.9 per cent. Compared to the company's 12.42 billion euros sales revenue achieved in H1 2020, Porsche witnessed an increase of 33 per cent. At the same time, the company's operating result grew by 127 per cent, as against the 1.23 billion euros achieved during the same period in 2020. Having said that, this strong growth should be considered a one-off incident given the unfavourable conditions caused by the Covid-19 pandemic in the second quarter of 2020. Also Read: Porsche's Global Sales Grew 31% In First Half Of 2021; Sells Over 1.53 Lakh Units Worldwide A more accurate comparison would be with the H1 results of 2019 when Porsche achieved a revenue of 13.41 billion euros, leading to a growth of 23 per cent in 2021. At the same time, compared to the 2.21 billion euro operating profit registered between January and June 2019, the company saw a growth of 26 per cent this year for the same period. In the first half of 2021, Porsche also set a new sales record, delivering 153,656 vehicles worldwide Commenting on the company H1 performance, Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG said, "Despite large investments in electrification and digitalisation for the future, we achieved a strong return on sales of 16.9 per cent. Alongside the strong sales figures, our strict cost management also contributed to this. Also, the business fields consulting, and financial services developed very well. Our profitability programme does not endanger jobs, it secures them. And it doesn't cut back on innovations but drives them forward." In the first half of 2021, Porsche also set a new sales record, delivering 153,656 vehicles worldwide. The company managed to witness a 31 per cent growth compared to last year, however, we must consider the fact that weak sales were mainly due to the pandemic. Overall, Porsche is maintaining its goal of achieving a return on sales of 15 per cent in the 2021 financial year. The company's goal here is to improve the cumulative result by 10 billion euros by 2025 and thereafter by 3 billion euros in each subsequent year.