Porsche SE Achieves Solid Group Result in the First Nine Months of Fiscal Year 2023

Porsche Automobil Holding SE (Porsche SE) announced a group result after tax of 3.8 billion euros for the first nine months of fiscal year 2023. This represents a decrease from the previous year's figure of 4.8 billion euros.

The group results after tax was primarily influenced by the outcome of the investment in Volkswagen AG, which was accounted for at equity, amounting to 3.6 billion euro, according to the company’s press release.

Porsche SE's second core investment, Dr. Ing. h.c. F. Porsche AG (Porsche AG), recorded a 236 million euro result in the reporting period. This includes profit contributions from ongoing equity accounting totaling 492 million euro, as well as effects from the purchase price allocation of minus 256 million euro.

Net Liquidity and Operating Activities

According to Reuters, Porsche SE Group’s net liquidity improved to minus 5.8 billion euro as of September 30, 2023, compared to minus 6.7 billion euros as of December 31, 2022. Notably, cash inflow from operating activities included a corporate income tax refund of 316 million euros, primarily related to previously deducted capital gains tax on dividends received.

During the third quarter, the company recognized other operating income of 219 million euro, resulting from refunds received from Volkswagen AG in connection with tax matters. These refunds are expected to lead to a cash inflow in the fourth quarter of 2023, totaling around 500 million euros.

Dr. Johannes Lattwein, member of the board of management responsible for finance and IT, highlighted the solid group result and positive net liquidity as evidence of the successful implementation of Porsche SE's financial strategy. The company aims to consistently reduce its financial debt, ensure a stable dividend distribution to shareholders, and further expand its investment portfolio.

Outlook for Fiscal Year 2023

Based on the expectations of the Volkswagen Group and the Porsche AG Group regarding their future development, Porsche SE maintains its forecasted group result after tax range of 4.5 billion euros to 6.5 billion euros for fiscal year 2023. However, the company anticipates that the group result after tax will fall within the lower half of this range.

As of December 31, 2023, the net liquidity of the Porsche SE Group is expected to be negative. Nevertheless, considering the improved liquidity position, it is anticipated to fall within the upper half of the projected range of minus 6.1 billion euros to minus 5.6 billion euros.

With a solid group result in the first nine months of fiscal year 2023, Porsche SE is well-positioned to capitalize on future opportunities. The company's financial performance and outlook reflect its commitment to sustainable growth and value creation for its stakeholders.

Photo: Porsche Newsroom