Porsche among the most profitable automakers in the world – RM38.5 bil Q1 revenue, up 28% from Q1 2020

Porsche has long known to be one of the most profitable car manufacturers in the world, and its sales results for the first quarter of 2021 upholds that narrative. For Q1 this year, Porsche posted a sales revenue of 7.7 billion euros (RM38.5 billion), representing a 28% increase over the 6 billion euros (RM30 billion) it achieved in the same period last year.

Its operating profit is 1.2 billion euros (RM6 billion), more than double from Q1 2020’s result of 572 million euros (RM2.86 billion). The return on sales also nearly doubled to 16.2%, up from 9.5%.

In terms of numbers, Porsche delivered nearly 72,000 vehicles globally in the first three months of the year, a 36% jump compared to the same period last year. Once again, the Macan proved to be the most popular model, with 22,458 units shipped.

Porsche among the most profitable automakers in the world – RM38.5 bil Q1 revenue, up 28% from Q1 2020

The Taycan was also a strong seller – Porsche’s first fully electric sports car found 9,072 new homes, nearly matching the sales of the iconic 911 (9,133 units sold globally). Interestingly, nearly 50% of Taycan buyers are new to the Porsche brand, making it both a highly aspirational and gateway model to the Porsche family.

Speaking on the results, Porsche CEO Oliver Blume said: “There is a strong team behind this strong showing. Our teamwork allows us to steer the company successfully through these challenging times, based on our fresh and attractive product range. We will sell significantly more Taycan cars this year than in 2020. In the first quarter, deliveries of our successful all-electric model were almost half of the total for all of 2020.”

Porsche board member for finance and IT, Lutz Meschke said: “We have started the year very well and expect that we will once again achieve our strategic goal of a 15% return on sales in fiscal year 2021.”

“Reaching this benchmark is an even greater achievement because we are investing significantly more compared with the past in electrification, digitalisation and also sustainability. Our quarterly numbers show that we are positioned very well – both in terms of our cost and revenue structure and also with our model range,” he added.

Meschke is also particularly satisfied with the company’s high level of liquidity: “Our strong net cash flow of more than 1.5 billion euros (RM7.5 billion) shows that we are operating with strong margins.” The net cash flow was still negative (-219 million euros or RM1.09 billion) in the first three months of 2020.

“If our successful start to 2021 is not checked by a possible semiconductor shortage, I am optimistic that we will be able to deliver a record operating result at the end of the year,” Meschke said. “Even with all this success, we must not forget that we are facing great challenges. That is why we will continually search for potential new sources of both revenues and savings.”