Porsche sees jump in profit and sales as luxury brands float above recession fears
Porsche, the German-based car manufacturer, reported a 25 per cent jump in its profit this quarter as luxury car demand remains unperturbed amid a gloomy global economy.
The luxury car marque saw its operating profit jump 25.4 per cent to €1.8bn (£1.59bn), beating analysts’ predictions, while sales rose 25.5 per cent in the first quarter to €10.1bn (£8.91bn).
“Our business model is flexible and robust, even in a challenging market environment,” Porsche’s chief executive officer Oliver Blume, said.
Porsche also reported an increase of deliveries to 80,767 this quarter, up from 68,426 last year, when chip shortages and other supply chain issues problems pummelled the sector.
“Markets around the world remain volatile, so we’re all the more satisfied with our figures. The significant growth is due to a number of factors: higher group sales, continued positive pricing and mix effects,” Lutz Meschke, deputy chair of the executive board, said.
Europe’s economic downturn has had little effect on high-end car brands, with wealthy consumers still willing to splash out on expensive cars despite high inflation and the ongoing cost of living crisis.
Aston Martin’s yearly results this morning showed a 27 per cent year-on-year revenue increase, whilst Bentley last month reported record profits of £624m for the last financial year.
“There’s no denying that luxury car demand is holding firm, as demonstrated by Porsche’s numbers,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said.
“The car maker also signalled that lucrative extras are very much still being put through the order book, which demonstrates the chasm between luxury car customers and traditional clients – in a time when incomes are facing such enormous pressure, personalised car interiors are far out of reach for most,” she added.
The results come after Porsche’s IPO in September, the largest ever carried out in Europe, which saw Porsche split from its former parent company Volkswagen.