Volkswagen Posts Strong Performance In First Half Of 2021 Despite COVID-19 Pandemic, Global Chip Sho

Volkswagen has concluded the first half of 2021 on a successful note despite the disruptions caused by the semiconductor shortage and COVID-19 pandemic. The company says it managed to do so because of its efficient crisis management, strict cost discipline and systematic implementation of its ACCELERATE strategy. The number of vehicles delivered worldwide increased to around 2.7 million, which is 5 lakh more than the previous year. The carmaker says this increase was partly achieved through smart warehouse and supply management.

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Volkswagen posted sales revenue of EUR 40.7 billion, operating profit of EUR 1.8 billion and operating net cash flow of EUR 0.8 billion

Volkswagen's sales revenue jumped by 42 per cent year-on-year to EUR 40.7 billion on the back of significant growth in sales volume (H1 2020: EUR 28.6 billion). Moreover, earnings improved by EUR 3.3 billion year-on-year to around EUR 1.8 billion with an operating return on sales of 4.4 per cent.

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Volkswagen CFO Alexander Seitz: "We succeeded in further reducing our fixed cost ratio. Our strict cost discipline, the good progress we have made in implementing our strategic realignment in North and South America, results-oriented management of the markets and significant volume growth are giving a boost to our financial figures." The operating net cash flow before special items was positive at EUR 0.8 billion. "This shows that we are well on the way to achieving our goal of an operating net cash flow of between EUR 1 and EUR 2 billion in 2023."

Volkswagen delivered half a million more vehicles than in the previous year

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Seitz further added, "Although there are signs that the supply bottlenecks for semiconductors are beginning to ease, we expect a very challenging third quarter from a supply perspective. Nevertheless, we are confirming our outlook for the year as a whole. We anticipate a significant year-on-year increase in deliveries and sales revenue in 2021 and still aim to post an operating return on sales in the target corridor between 3 and 4 per cent. We are sticking to our target margin of 6 per cent by 2023 and aim to position the brand for sustainable profitability."