- Wednesday, October 16, 2024
Volkswagen anticipates a deceleration in revenue growth for the upcoming year, attributing it to a challenging economic landscape and heightened competition. Despite this outlook, the company remains optimistic due to a series of new product launches and improved cost efficiencies.
Financial Performance and Market Reaction
Following this announcement, Volkswagen's shares experienced a 5.2% decline in value, with trading reaching EUR118.92 at 1424 GMT. The carmaker projects a revenue growth rate of up to 5% for the year, marking a significant slowdown compared to the impressive 15% growth achieved in 2023. Additionally, the operating margin is expected to range between 7% and 7.5%, slightly surpassing last year's 7%.
Strategic Initiatives and Future Outlook
Volkswagen has implemented various cost-saving measures and a comprehensive 10-point plan to facilitate the transition towards electric vehicles, noting the completion of essential restructuring efforts. CEO Oliver Blume expressed confidence in the company's trajectory, emphasizing a solid foundation for accelerated growth starting in 2025.
Financial Highlights and Dividend Announcement
The auto group's adjusted operating profit for the year totaled 22.58 billion euros, surpassing analyst expectations. With group sales revenue reaching EUR322.28 billion, Volkswagen reported impressive financial figures. Moreover, the company announced a dividend of EUR9 per ordinary share and EUR9.06 per preferred share, representing an increase from the previous year.
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