PSA Group recorded 1H 2020 profit despite Covid-19 and revenue drop, maintains full year margin target

PSA Group recorded 1H 2020 profit despite Covid-19 and revenue drop, maintains full year margin target

Everyone’s in financial trouble no thanks to Covid-19, right? Those observing the shopping spree of some Malaysians, and the maker of Peugeot and Citroen will disagree. France’s PSA Group has recorded a profit in the first half of 2020, despite the coronavirus pandemic hitting Europe hard.

Net profit for the first half of 2020 was 595 million euros (RM2.96 billion), down from 1.83 billion euros in the first half of 2019. Revenue fell 34.5% to 25.12 billion euros. However, PSA reported a “very strong rebound” for June sales in its core European markets, and the bull run had extended into July.

The carmaker – which like all the other auto companies, had to stop production and close dealerships during the height of the outbreak – will be sticking to its mid-term profit margin target, Reuters reported. PSA reiterated its goal for average margins of over 4.5% for 2019-2021, even though it stands at 3.7% at 1H 2020, down from 8.5% at the end of 2019.

PSA Group recorded 1H 2020 profit despite Covid-19 and revenue drop, maintains full year margin target

PSA’s CEO Carlos Tavares said that the group’s order books were “excellent” at the end of the first half, pumped up by pent-up demand for reigning European Car of the Year Peugeot 208 and the Opel/Vauxhall Corsa after lockdowns eased. The company said it was experimenting with more online sales, and expected this to become a growing part of the business.

Meanwhile, Tavares told analysts the agreed merger with Fiat Chrysler Automobiles (FCA) to create the world’s fourth largest carmaker under the name Stellantis is still on track to finalise in Q1 2021.

Not everyone is doing so well though, especially not Nissan.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • granny on Jul 29, 2020 at 12:54 pm

    in 2006,
    a Pug 206 vs Proton Wira

    clearly our Wira is a better choice.

    in 2020,
    Pug 208 vs Proton Iriz
    how to compare?

    Like or Dislike: Thumb up 2 Thumb down 0
    • Rakyat Malaysia on Jul 29, 2020 at 5:36 pm

      The Iriz is more reliable and has more RV? 2 things most important to us. Oh don’t forget 208 is double the pricing of Iriz.
      How to compare?

      Like or Dislike: Thumb up 0 Thumb down 3
  • Datuk on Jul 29, 2020 at 1:36 pm

    Power Puegeot.

    Naza Nasim lost the game for Malaysia market.
    Peugeot 206 RM 66,888 solidly built altough still comes with typical French car problems.
    https://paultan.org/2006/05/17/naza-206-bestari-in-depth/

    Didn’t replaced with similar price Peugoet 208.

    Looking at the Puegeot 208 B-hatchback and 2008 B-SUV
    It sure make a beautiful sales figure here if still follow the previous price range

    Like or Dislike: Thumb up 2 Thumb down 0
 

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