Porsche aims for more than 20% operating margin
As it approaches its IPO, Porsche has revised its profitability targets upwards. The brand is aiming for a long-term operating margin of more than 20%. For the 2022 financial year, it should oscillate between 17 and 18%.
A minority share of the capital of Porsche AG should be listed on the stock exchange at the end of 2022.
Porsche »has the long-term ambition to achieve profitability (operational, in terms of EBIT) on sales of more than 20% », indicated, Monday, July 18, 2022, his boss Oliver Blume at Porsche Investor Day.
For the year 2022, Porsche has already raised its operating margin target, which must now reach between 17 and 18%, against « above 15% » referred to before. Turnover is expected between 38 and 39 billion euros, representing growth of 11 to 14% compared to 2021, when the group sold 302,000 Macans and other Cayennes worldwide, a record.
A good omen before the placement on the stock market of Porsche AG by the Volkswagen group, which plans to introduce a minority share of its subsidiary on the market during the fourth quarter. This plan must be decided and communicated during the summer.
Porsche is valued between 80 and 90 billion euros, according to sources cited by Bloomberg. By giving up a fraction of its control over Porsche, Volkswagen could obtain the billions needed to finance its investments in the electric, connected and autonomous car.
Read also : Porsche’s IPO will « accelerate » Volkswagen’s electric shift
Porsche AG, owned by the Volkswagen Group since 2009, should not be confused with the listed company Porsche Automobil Holding (« Porsche SE » for short), also based in Stuttgart and majority shareholder of the Volkswagen Group since 2009. The German region of Lower -Saxony is also a direct shareholder of Volkswagen, up to 20%, thus being able to exert its influence there.
This construction prevents to this day the family Porsche-Piech, majority shareholder of the Porsche holding company, to exert a significant influence on the Volkswagen group and therefore on the Porsche nugget. With Porsche AG listed on the stock exchange, the Porsche-Piëch clan could gradually increase its control in the family business started by the engineer Porsche ferry after the Second World War.
The manufacturer of the 911 has also set its sights on the electric and plans to launch a « new all-electric SUV model« , said Oliver Blume. To meet the global demand for electrified luxury vehicles, 80% of the brand’s vehicles will be fully electric in 2030. (with AFP)
