The stock market newbie Porsche has skyrocketed profits in the first nine months. While sales grew by almost 16 percent to 26.7 billion euros, operating profit soared by around 40 percent to 5.05 billion euros, as the sports car manufacturer announced on Friday. Sales per vehicle have risen significantly thanks to “advantageous price positioning”, and exchange rate effects have also contributed to the increase in revenue, explained Porsche AG. Between January and September, Porsche delivered 221,512 new cars, an increase of 2 percent compared to the same period last year. The shares lost about 3 percent.
Although Porsche spoke of significant challenges due to disruptions in the global supply chain and the availability of parts for production, it confirmed the outlook for the full year and the longer-term goals. “The development of incoming orders is still stable,” it said in the interim report.
The operating return on sales is expected to be in a range of 17 to 18 percent in 2022. This means that Porsche remains the most profitable German manufacturer, closely followed by Mercedes Benz. In the medium term, the luxury brand wants to earn up to 19 percent and in the long term more than 20 percent of sales. After the first three quarters, Porsche has a certain buffer: So far, there is a margin of 18.9 percent, 3 percent more than in the previous quarter.
“From our point of view, the results show that Porsche is well positioned in the luxury automotive segment,” said Porsche boss Oliver Blume (54). The parent company Volkswagen had Porsche in September brought to the stock exchange and through the listing of a quarter of the Porsche AG preference gross 9.1 billion euros. In addition, 25 percent plus one share of the voting stock of Porsche AG goes to the VW umbrella company Porsche SE, which is managed by the owner families Porsche and Piëch is controlled. Thanks to the sale of the shares, VW shareholders are to receive a special dividend of EUR 19.06 per share.
More IPOs by VW subsidiaries?
Blume sees Porsche’s IPO as a model for increasing the group’s stock market value as a whole. The multi-brand group has not yet benefited from the share placement of its sports car subsidiary, Blume admitted at a conference call on Friday. That should change, as the individual brands went through virtual IPOs, as announced. Volkswagen intends to present the results at a capital market day next year. Then the potential in the group should become visible, said Blume.
Because of its many subsidiaries, Volkswagen is sold by mass manufacturers such as VW, Skoda and Seat via luxury brands such as Audi and Porsche to truck and bus manufacturers under the umbrella of Traton and the motorcycle brand Ducati are valued on the stock exchange with a so-called conglomerate discount.
Before Blume, several CEOs tried to make the true value of the group clear on the stock exchange. Blume hopes that this will succeed through the dry runs of the individual brands for an IPO. On this basis, a decision can later be made to place further daughters. That has not yet been decided.