Porsche AG has demonstrated its resilience and strategic foresight at its virtual Annual General Meeting (AGM) on 7th June 2024, where Chairman of the Executive Board, Oliver Blume, expressed his satisfaction with the company's strong performance in 2023. Despite challenging global economic conditions, Porsche AG remains highly profitable and is embarking on its most ambitious model launch programme in history.
Record Product Launches in 2024
Oliver Blume highlighted that 2024 is set to be a landmark year for Porsche, marking the biggest model launch programme the company has ever undertaken. “In the past months, we have introduced new models across five model series,” Blume stated. “This is laying the foundations today for our profits tomorrow—and for future dividends.” This extensive update includes major releases for the Cayenne, Panamera, Macan, Taycan, and the iconic 911, significantly reducing the average age of Porsche's model range and setting new technological standards in the automotive industry.
Blume also provided an exciting glimpse into the future with the all-electric Macan SUV, set to launch in 2024. “Our long-standing bestseller will continue to be the highest-performance model in its segment, now as an all-electric car,” he said. Furthermore, the recently unveiled Porsche 911, the first to feature a hybrid drive, is already making waves with its enhanced power and driving dynamics.
Doubling Dividends: A Reward for Shareholders
In recognition of the company's robust financial performance, the Executive and Supervisory Boards of Porsche AG have proposed a significant increase in dividends. For the 2023 financial year, a dividend of €2.30 per ordinary share and €2.31 per preferred share has been recommended, representing a total payout of approximately €2.1 billion—nearly 41% of the Group's profit after tax. This decision reflects Porsche’s commitment to delivering value to its shareholders, with a medium-term plan to increase the payout ratio to around 50% of Group profit after tax.
Financial Highlights and Strategic Investments
Porsche AG’s financial results for 2023 underscore the company's resilience and strategic investments. Group sales reached €40.5 billion, marking a 7.7% increase from the previous year, while Group operating profit rose by 7.6% to €7.3 billion. The company maintained a stable operating return on sales of 18%, despite global supply chain disruptions and substantial investments in digitalisation and product innovation.
The company also reported strong automotive net cash flow of €4.0 billion, up from €3.9 billion in the previous year. These results reflect Porsche’s strategic focus on long-term growth and profitability, underpinned by significant investments in research and development. “Last year alone, we invested around €5 billion in R&D and the Porsche ecosystem—the largest amount in our company’s history,” Blume revealed. He also emphasised the company's commitment to digitalisation, with a planned investment of €4 billion over the next five years, including more than €350 million in data and artificial intelligence.
Looking Ahead: Strong Forecasts Amidst Global Challenges
Despite a challenging macroeconomic environment, Porsche AG remains optimistic about the future. The company expects to achieve a Group operating return on sales in the range of 15% to 17% for the full year of 2024, based on projected Group sales of around €40 to €42 billion. In the medium term, Porsche is targeting an operating return on sales of approximately 17% to 19%, with a long-term aim of exceeding 20%.
However, Blume cautioned shareholders about the typical “V effect” that accompanies new model launches—where the phasing out of older models and the introduction of new ones can temporarily affect sales and revenue. Nonetheless, he assured shareholders that Porsche is well-equipped to manage these transitions effectively.
Conclusion
Porsche AG’s 2024 AGM highlighted a year of significant achievements and ambitious plans. With the largest model launch programme in its history and a strong financial position, Porsche is poised to continue setting new standards in the automotive industry while delivering substantial value to its shareholders. The company’s commitment to innovation, digitalisation, and sustainable growth ensures that it will remain at the forefront of the luxury sports car market for years to come.
Explore more about Porsche’s latest developments and product launches at Porsche Centre South Lakes.