2016 was a banner year for Porsche AG. In fact, it was the most successful year in the company’s history. Record highs were achieved in terms of deliveries, revenue, operating profit and the total number of employees. Here are some of the highlights from Porsche AG’s 2016 financial year:
- Deliveries increased by six% to 237,778 Porsches
- Revenue increased by 4% to 22.3 billion euros
- Operating results/profit increased by a massive 14% to 3.9 billion euros
- Return on sales increased to 17.4% (from 15.8% in 2015)
- Porsche’s total workforce grew by 13% to nearly 28,000 (actual total of 27,612)
- Of the nearly 238,000 Porsches sold, 165,000 of them were Macans and Cayennes (95,000 Macans, 70,000 Cayennes)
- With 65,246 Porsche’s delivered (a 12% increase from last year), China continues to lead the way as Porsche’s largest single market
Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT, stressed: “With a profit margin of over 17 per cent, Porsche continues to be among the most profitable automobile manufacturers in the world. The key to this achievement is our unique range of products and our healthy cost structure.” The long-term currency hedging strategy also made an important contribution to the record result. “We expect to see moderate growth in terms of deliveries and revenue in the current financial year of 2017, despite the continuing economic and political uncertainty in various regions of the world. In terms of operating result, we’re striving to match the value of the previous year, provided that exchange rates remain stable”, Meschke continued. “We will gain impetus from the new Panamera, particularly with its plug-in hybrid versions and the Sport Turismo”, Blume stated.
As Porsche continues to look for future growth, R&D expenditures grew to 2.2 billion euros. Most of the development is earmarked from plug-in hybrid vehicles, the 100% electric Mission E and what Porsche calls “digital transformation”.
“Digitalisation is more than an investment in the latest technologies. It opens new economic opportunities, increases customer benefits and makes processes more efficient.” In 2016, the company founded Porsche Digital GmbH in Ludwigsburg and the Digital Lab in Berlin. Porsche also took a stake in the venture capital fund e.ventures and the parking service provider Evopark. “In the medium term, we want to generate a double-digit percentage of sales through digital services”, said Meschke.