Volvo Cars has announced its financial results for the full year of 2022. The company had an operating profit of 22.3 billion SEK and a profit margin of 6.8%. Despite facing challenges like supply constraints, lockdowns in China, and increased costs, the company was able to make progress on its goals.
One highlight for Volvo Cars was the strong sales performance of their electric cars. In 2022, sales of electric cars doubled from the previous year and accounted for 11% of all car sales. This was despite production constraints.
Volvo’s Recharge cars, which include electric and hybrid cars, also performed well, with a sales share of 33% for the year and 41% in the fourth quarter. During the last three months of the year, these cars had a 100% sales share in countries like Brazil, Thailand, Indonesia, and Norway.
The company’s revenue reached 330.1 billion SEK, the highest ever recorded in its history, due to better products, higher prices, and other factors. The company’s EBIT (earnings before interest and taxes) was 17.9 billion SEK, down 15.7% from the previous year due to production constraints, increased costs, and spot-buying of semiconductors.
Volvo Cars has a goal of becoming a fully electric car company by the end of the decade and becoming climate neutral by 2040. To help reach these goals, the company is improving its supply chain and reducing CO2 emissions. The company is also working to reduce costs by optimizing its resources.
While 2023 may still have some challenges, Volvo Cars is hopeful that the supply of semiconductors will continue to improve and the price of lithium will start to decrease. Despite uncertainty, the company is seeing strong demand for its cars and is closely monitoring the external environment to adapt accordingly.
