Luxury automaker Porsche issues growth forecast for 2022 after record profits

luxury car manufacturer PorscheAG issued an ambitious long-term outlook of more than 20% on sales after the company on Monday reported record earnings for 2022 on higher shipments.

The automaker said its operating profit rose 27% to 6.77 billion euros ($7.23 billion) last year, as deliveries rose 2.6% to 309,884 units.

The company proposes a dividend of EUR 1.00 per common share and EUR 1.01 per preferred share. It issued continuous growth forecasts for both the medium and long term:

“If the economically challenging conditions do not worsen significantly, we expect an operating return on sales in the range of 17 to 19 percent for the 2023 financial year,” said Lutz Meschke, Deputy Chairman of the Board of Management and Board Member for Finance and IT.

The medium-term guidance assumes sales of 40 to 42 billion euros.

Meschke adds: “In the long term, we are aiming for an operating return of more than 20 percent in the group.”

Porsche, which represents a significant part of Volkswagen Group’s revenue, overtook Volkswagen as Europe’s most valuable automaker in its first week on the German stock exchange after listing on September 29 last year. Volkswagen still holds 75% minus one common share of Porsche’s total share capital.

Volkswagen will present results on Tuesday.

Porsche shares are down 2.2% in early trade on Monday, while Volkswagen is down 2.5%, but the two companies are up about 10% and 14%, respectively, since the start of 2023.