Amidst market challenges, Audi Group reports stable earnings and gears up for a series of new model launches.
Audi Group has successfully stabilized its financial performance in the first half of 2024, despite navigating through significant industry challenges. CFO Jürgen Rittersberger noted the company’s progress in the second quarter, highlighting the effectiveness of the ongoing Performance Program 14 aimed at enhancing efficiency and maximizing cost and revenue opportunities. CEO Gernot Döllner emphasized the strategic rollout of new models, including the next-generation Audi A5 and the all-electric Audi A6 e-tron, set to debut by the end of July, followed by the new Q5 in the fall.
Financial Highlights:
- Revenue: €30.9 billion
- Operating Profit: €2.0 billion
- Net Cash Flow: €1.1 billion
- Vehicles Delivered: 843,991
Audi Group’s revenue for the first half of the year totaled €30.9 billion, a 9.5% decrease from the previous year. Despite this, the company achieved an operating profit of €2.0 billion with an operating margin of 6.4%. Net cash flow stood at €1.1 billion. The Brand Group Progressive delivered 843,991 vehicles in the first six months, with electric vehicle (BEV) deliveries showing a positive growth of 1.3%, totaling 76,657 models.
Performance Program 14: A Roadmap to Efficiency
CFO Jürgen Rittersberger commented on the ongoing efforts to bolster financial performance, acknowledging the challenges ahead but expressing confidence in the company’s strategic initiatives. “We are in a year of transition. Our Performance Program 14 is key to increasing efficiency and unlocking new cost and revenue potentials,” he said.
Model Rollouts: A New Era for Audi
Audi’s strategic focus includes the launch of numerous new models, marking a significant phase in its product lineup. CEO Gernot Döllner highlighted the recent premiere of the Audi A5 and the upcoming Audi A6 e-tron, emphasizing the company’s commitment to innovation and excellence. “With over 20 launches planned for 2024 and 2025, we are expanding and rejuvenating our portfolio, positioning ourselves robustly with all-electric models, plug-in hybrids, and a new, highly efficient generation of combustion-engine vehicles,” Döllner stated.
Regional Market Performance:
- Europe: Stable demand for all-electric models, with 48,332 electric cars delivered, only a slight decrease of 1.7% from the previous year. Total deliveries in Europe amounted to 343,575 vehicles, a 9.7% decrease.
- USA: Increased demand for electric vehicles, with 11,121 units delivered, a 10.2% increase. However, total deliveries fell by 14.2% to 92,913 units.
- China: Robust performance with 320,370 models delivered, a minor decline of 1.9%, despite increased competition and a shrinking premium market.
Financial Results and ESG Ratings:
Audi’s financial results for the first half of 2024 saw a 9.5% decline in revenue to €30.9 billion, with an operating profit of €2.0 billion. The company’s commitment to sustainability was reflected in its improved ESG rating from ISS ESG, achieving a B- rating, placing it among the highest-rated automotive companies.
Performance of Luxury Brands:
- Bentley: Delivered 5,476 vehicles, with revenue of €1.4 billion and an operating margin of 18.8%.
- Lamborghini: Increased deliveries by 4.1% to 5,558 models, with revenue of €1.6 billion and an operating margin of 28.2%.
- Ducati: Delivered 32,098 motorcycles, generating revenue of €606 million and an operating margin of 15.1%.
Outlook for 2024:
Audi Group maintains its revenue forecast for 2024 between €63 billion and €68 billion, with an adjusted operating margin of 6-8%, considering expected restructuring expenses. The net cash flow forecast remains steady at €2.5 to 3.5 billion.
The Audi Group’s performance in the first half of 2024 showcases its resilience and strategic foresight amidst a challenging market landscape. With a focus on efficiency and innovation, Audi is poised to navigate the road ahead, bolstered by its robust portfolio and commitment to sustainability.
Selected Audi Group key figures at a glance
| First half of 2024 | First half of 2023 | |
| Deliveries automobiles Brand Group | 843.991 | 919.548 |
| Revenue in EUR million | 30.939 | 34.169 |
| Operating profit in EUR million | 1.982 | 3.417 |
| Operating margin in percent | 6,4 | 10,0 |
| Net cash flow in EUR million | 1.130 | 1.882 |
| Financial result in EUR million | 783 | 880 |
| Profit after tax in EUR million | 2.154 | 3.262 |
| EU taxonomy-aligned revenue in percent | 14,0 | 14,9 |
Audi brand deliveries to customers
| First half of 2024 | First half of 2023 | Dev. vs. 2023 | |
| World | 832.957 | 907.111 | -8,2 % |
| Europe | 343.575 | 380.476 | -9,7 % |
| – Germany | 102.511 | 125.690 | -18,4 % |
| – United Kingdom | 65.343 | 68.099 | -4,0 % |
| – France | 24.813 | 24.385 | +1,8 % |
| – Italy | 38.289 | 36.169 | +5,9 % |
| – Spain (incl. Canary Islands) | 19.788 | 22.354 | -11,5 % |
| USA | 92.913 | 108.345 | -14,2 % |
| Mexico | 5.533 | 6.328 | -12,6 % |
| Brazil | 2.718 | 2.855 | -4,8 % |
| Mainland China and Hong Kong | 320.370 | 326.505 | -1,9 % |
