Growth And Record Profitability In 2017 H1
By Kyle Lindsay
Wednesday, July 26, 2017 - 14:20
Group revenues amounted to €29,165 million in the first half of 2017, up 5.0% compared to €27,779 million in the first half of 2016. The cumulated growth since the beginning of Push to Pass, excluding exchange rates impact, stands at +8.2%.
“Groupe PSA record performance was achieved thanks to our customers who have made our last commercial launches great successes, and thanks to the continuous commitment of all Group employees in the execution of the Push to Pass plan, combining agility and business sense. The way the teams overcame headwinds brings confidence for the coming challenges.” said Carlos Tavares, Chairman of Groupe PSA Managing Board.
Automotive revenues amounted to €19,887 million, also up 3.6% compared to the first half of 2016, benefiting from the success of the new models and the pricing discipline.
Group recurring operating income amounted to €2,041 million, up 11.5% compared to the first half of 2016. The Automotive recurring operating income grew by 10.7% compared to the first half of 2016 at €1,442 million. This 7.3% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions.
Group non-recurring operating income and expenses had a negative impact of -€112 million, compared to -€207 million in the first half of 2016.
Group net financial expenses decreased to €121 million, compared to €150 million in the first half of 2016.
Consolidated net income reached €1,474 million, up by €91 million, in spite of the negative impact of operations in China. Net income, Group share, reached €1,256 million, compared to €1,212 million in the first half of 2016.
Banque PSA Finance reported recurring operating income of €312 million, up 5.1% compared to the first half of 2016.
Faurecia recurring operating income amounted to €587 million, an increase of 19.8% compared to the first half of 2016.
The Free Cash Flow of manufacturing and sales companies amounted to €1,116 million, driven by the improved profitability of operations.
Total inventory, including independent dealers, stood at 374,000 vehicles at 30 June 2017, down 25,000 units from end June 2016.
The manufacturing and sales companies’ net financial position at 30 June 2017 was a positive €7,631 million, up €818 million compared to 31 December 2016.
Market outlook: for 2017, the Group expects the automotive market to grow by approximatively 3% in Europe, and 5% in China, Latin America and Russia.
The Push to Pass plan sets the following targets:
Deliver over 4.5% Automotive recurring operating margin on average in 2016-2018, and target over 6% by 2021;
Deliver 10% Group revenue growth by 2018 vs 2015, and target additional 15% by 2021.
Financial Calendar – 25 October 2017: third-quarter 2017 Revenue
Groupe PSA consolidated financial statements at 30 June 2017 were approved by the Managing Board on 20 July 2017 and reviewed by the Supervisory Board on 25 July 2017. The Group’s Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.
The interim results report and interim financial results presentation for 2017 are available at www.groupe-psa.com, in the “Analysts and Investors” section.