The brand's profits are actually up so far in 2022.
Unsurprisingly, Porsche has had a pretty good year. The Stuttgart sports car brand says it's seen both revenue and profits increase during this quarter as compared to last year. That's rather impressive given the amount of investing Porsche has been doing. It has announced new synthetic fuels partnerships as well as investments in new battery technologies to ensure models like the Porsche Taycan only get better.
Revenue grew from 7.73 to 8.04 billion euros (around $8.1 billion to $8.4 billion at current rates) over the last year, with profits rising from 1.26 to 1.47 billion euros ($1.3 billion to $1.5 billion). Porsche says that's an increase of 4.1% and 17.4% respectively. It also says the return on sales has improved from 16.2% to 18.2%.
"In the first quarter, Porsche benefited in particular from a strong sales mix, disproportionate growth in the other business segments and positive currency effects," said Lutz Meschke, Deputy Chairman and Member of the Executive Board responsible for Finance and IT at Porsche. Meschke also said that despite "global challenges," the brand is on track, though "it is difficult to provide an outlook." It sounds like Porsche isn't sure when supply chains will begin to stabilize for the brand.
Besides the loss of 1,000 Porsche models at sea aside, the brand has been hit hard by supply chain disruptions. Russia's greedy invasion of Ukraine has seriously hampered production, causing both Macan and Panamera production to be suspended at one point. Despite those issues, Porsche says the 5% drop in deliveries over the last year hasn't stopped the figures discussed above from happening. It credits best-selling models like the Porsche Cayenne for that, which registered 19,029 units in Q1, followed by the Macan (18,329) and Taycan (9,470).
Additionally, Porsche says its electric deliveries are stronger than ever, accounting for 23% of all models delivered in the last year, with 14% of deliveries being fully electric. Speaking of electric cars, Porsche says it plans to continue investing in the practices discussed above. The company continues to invest in areas such as electrification, digitalization, and sustainability.
Thus far, those strategies appear to be paying off for the brand. Should Porsche's synthetic fuels plans work out, both modern and classic gas-powered models like the 911 will continue to exist, and its electric vehicles should be improving rapidly thanks to investments in that sector.
"Our success must not allow us to lose sight of those who are in difficulty through no fault of their own," said CEO Oliver Blume. "We are very concerned about the suffering of the Ukrainian people." The brand has offered language courses for Ukrainian refugees and donated to the UN's refugee program. At least we know those profits are going to a good cause.
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