Wolfsburg, August 1 (FFN) – Volkswagen Group’s profit declined in the second quarter, impacted by challenges faced by its core brands. However, the results were better than expected. Financeflashnews reports this based on information from the DPA news agency.
Operating profit for the three months ending in June decreased by 2.4% year-on-year to €5.46 billion, the company announced on Thursday. Revenue increased by 4.1% to €83.3 billion. The results of the Audi and Porsche divisions were negatively affected by problems related to supply chain disruptions and the launch of new models. The balance sheet was also burdened by high costs for layoffs at the flagship Volkswagen brand, where the group allocated approximately €900 million for this purpose.
Extraordinary expenses of approximately €1.7 billion for the potential closure of the Audi plant in Brussels should be reflected in the statements for the current third quarter. The group has already taken these into account when it lowered its full-year 2024 profit forecast in early July.
Here is a table summarizing Volkswagen Group’s financial performance in Q2 2024 compared to Q2 2023:
| Metric | Q2 2023 | Q2 2024 | Change |
|---|---|---|---|
| Operating Profit (EUR Billion) | 5.59 | 5.46 | -2.4% |
| Revenue (EUR Billion) | 80.00 | 83.30 | +4.1% |
As you can see, Volkswagen Group’s profitability declined slightly in Q2 2024, while revenue increased. This suggests that the company is selling more cars, but at a lower profit margin.
