On June 7th, Porsche AG conducted its virtual Annual General Meeting, where Chairman of the Executive Board, Oliver Blume, conveyed his satisfaction with the company’s achievements and outlined their ongoing strategy amid challenging macroeconomic conditions. Blume highlighted Porsche’s impressive performance in 2023, noting the company’s robust financial position and profitability. “Despite uncertain times, we struck an even better balance in our global sales,” Blume reflected.
Looking ahead to 2024, Blume expressed both ambition and optimism. “Next year marks the biggest model launch programme in Porsche’s history, with new models across five series. This positions us with the strongest product range we’ve ever had,” he stated. He acknowledged the complexity and challenges of these launches but emphasized that they are laying the groundwork for future profits and dividends.
Chairman of the Supervisory Board, Dr. Wolfgang Porsche, extended his gratitude to the 42,000 employees, acknowledging their exceptional dedication and contributions, which were crucial to the company’s success in the past year.
In line with its dividend policy, Porsche’s Executive and Supervisory Boards proposed a dividend payment of approximately 2.1 billion euros for 2023, representing nearly 41% of the Group profit after tax, translating to 2.30 euros per ordinary share and 2.31 euros per preferred share. Porsche aims to distribute around 50% of the Group profit after tax to shareholders in the medium term.
The Annual General Meeting agenda also included the re-election of the shareholder representatives on the Supervisory Board, whose term ends at the meeting’s close. The Supervisory Board recommended re-electing all 10 current shareholder representatives for another term.
Financially, Porsche reported a yield of 5.66 euros per ordinary share and 5.67 euros per preferred share for 2023. Group sales increased by 7.7% to 40.5 billion euros, with an operating profit rise of 7.6% to 7.3 billion euros. The operating return on sales remained stable at 18%, despite global supply chain disruptions and significant investments in digitalization, innovation, and brand experience. The net cash flow automotive was 4.0 billion euros, a slight increase from the previous year.
In 2023, Porsche delivered 320,221 vehicles, marking a 3.3% increase over the previous year, with a more balanced sales distribution across regions. The company has updated its major models, including the Cayenne, Panamera, Macan, Taycan, and 911, halving the average age of its model range and setting new technological standards. Blume highlighted the forthcoming all-electric Macan SUV and the hybrid-driven Porsche 911, both poised to set new benchmarks in their segments.
Blume addressed the market’s V effect during model transitions, where older models phase out as new generations roll in, and emphasizing Porsche’s commitment to managing this curve effectively.
Porsche is making substantial investments in its future, dedicating around 5 billion euros in 2023 alone to research, development, and the Porsche ecosystem. The company plans to invest 4 billion euros over the next five years in digitalization, with 350 million euros allocated to data and artificial intelligence.
The company began the second quarter strongly and remains optimistic about demand in most regions, except China, where demand for exclusive products is subdued. Despite macroeconomic challenges, Porsche AG maintains its forecasts, expecting a Group operating return on sales between 15 to 17% for 2024, with Group sales projected around 40 to 42 billion euros. In the medium term, Porsche anticipates a return on sales around 17 to 19%, with a long-term goal exceeding 20%.
