German Manager Magazine: Porsche SE: VW parent company reduces debts by one billion euros003192

The VW umbrella company Porsche SE (PSE) has reduced the mountain of debt it accumulated through the Porsche IPO by around one billion euros. While net debt was still 6.7 billion euros at the end of 2022, it was 5.7 billion euros at the end of last year, as the DAX group announced on Thursday in Stuttgart. In the long term, the annual repayment is planned to be in the mid three-digit million range. At the end of 2021, the PSE still had 641 million euros in net liquidity in its cash register.

The consolidated profit after taxes was around 5.1 billion euros last year – around 400 million euros lower than in 2022. However, without a special accounting effect caused by the purchase of VW preferred shares in the year before last, the consolidated profit in 2023 would have been higher than in the previous year , it was said. The result is significantly influenced by the core investments Volkswagen and Porsche.

In an initial reaction to the report, the investment company’s shares recently rose by 0.5 percent.

Further investments planned

However, the group wants to continue to invest in promising growth companies and invest in the low three-digit million range annually. “If attractive investment opportunities arise in the meantime, we will take advantage of them in the interests of our shareholders – even if the repayment schedule is postponed somewhat as a result,” CEO Hans Dieter Pötsch (72) is quoted as saying.

For the current year, the PSE is targeting a result of between 3.8 and 5.8 billion euros. In addition, the level of debt is expected to continue to decrease: it is expected to be between 5.0 and 5.5 billion euros at the end of the year.

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