Audi Achieves Operating Profit of €4.5 Million in 2019
Audi steered a steady course through a challenging 2019 financial year. The car manufacturer systematically reduced its WLTP inventories and achieved slightly higher deliveries for the Audi brand than in the previous year in a highly competitive environment.
Revenue of €55.7 billion reflects the high demand for SUVs and top-end models. Operating profit and operating return on sales reached €4.5 billion and 8.1 percent. The Audi Transformation Plan (ATP) contributed €2.5 billion in the 2019 financial year. Significantly strengthened spending and investment discipline are reflected by the improved return on investment (12.7 percent).
Audi is pushing ahead with its electrification initiative with numerous electric models this year. The company is intensifying the synergies with the Volkswagen Group now also in software development. Against the backdrop of the spread of the coronavirus and the unclear effects on the economy, the manufacturer sees major challenges in the year 2020 and is focusing on the health of employees worldwide and on the liquidity and stability of the business.
In view of the spread of the coronavirus and in order to minimize the risk of infection for employees, contractors and guests, the Audi Group is not holding an annual press conference this year.
“We are in an exceptional situation for which there are no tried-and-tested solutions or simple recipes. We are focusing on protecting our employees, contractors and guests and making the right business decisions in this volatile environment,” says Audi CEO Bram Schot. The company is shutting down its plants in Ingolstadt, Neckarsulm, Belgium, Mexico and Hungary in a controlled manner by the end of this week.
With regard to the 2019 financial year, Audi CEO Bram Schot says, “We can be satisfied; Audi is competitive. In a very challenging environment, we focused on our strengths and stabilized our business. Our operating return on sales was above 7 percent in each quarter of 2019 and was within our forecast corridor for the full year.” The company successively reduced its WLTP inventories from the previous year and successfully launched the next stage of its product initiative in the markets.
In 2020, Audi will again present around 20 models and systematically continue its electrification course. By the end of the year, the Audi core brand will launch five all-electric models on the markets and increase its PHEV offering to a total of 12 models. A PHEV variant will then be available in more than half of the model series. The Audi Group is thus preparing itself for intense competition and increasingly strict CO2 regulation.
The global economic situation has changed very significantly in the context of the spread of the coronavirus, which is also having a massive impact on supply chains, the production of vehicles and their marketing. Dr. Arno Antlitz: “The effects of the spread of the coronavirus on the economy and our business are uncertain. This makes a reliable forecast for the year 2020 almost impossible at present. Our focus is on our employees and their families worldwide. Audi will do its part to minimize the impact on the people in our country and at our Audi sites worldwide. We will continue to take all necessary measures to achieve this. In addition, it is our task to protect the liquidity and thus the stability of our company and, despite all the restrictions, to stabilize our core processes, for example in technical development or other areas of the company.”
Overview of selected key figures for the Audi Group
| 2019 | 2018 | |
| Deliveries Audi brand | 1,845,573 | 1,812,485 |
| Revenue Audi Group in EUR million | 55,680 | 53,617 |
| Operating profit before special items Audi Group in EUR million | 4,509 | 4,705 |
| Operating return on sales before special items Audi Group in percent | 8.1 | 7.9 |
| Operating profit Audi Group in EUR million | 4,509 | 3,529 |
| Operating return on sales Audi Group in percent | 8.1 | 6.6 |
| Net cash flow Audi Group in EUR million | 3,160 | 2,080 |
| Net liquidity Audi Group in EUR million | 21,754 | 20,442 |
| Return on investment Audi Group in percent | 12.7 | 10.4 |
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