French car manufacturer, Groupe PSA has announced that it achieved a new profitability record in 2019, with €74.7 billion Group revenue up by 1% compared to 2018.
For 2020, the Group anticipates a decrease by 3% of the automotive market in Europe and by 2% in Russia as well as a stable automotive market in Latin America.
Here’s the press release with more information:
PRESS RELEASE
Carlos Tavares, Chairman of Groupe PSA Managing Board said: “Our skilled and committed teams made the difference once again and we have achieved record results in 2019, driven by our agile, customer focused and socially responsible approach. We are ready for the energy transition and all teams are focused to offer a clean, safe and affordable mobility for customers. Based on our business model and fighting spirit which has proved to be efficient, we are eager to enter a new era with the projected merger with FCA.”
A dividend of €1.23 per share will be submitted for approval at the next Shareholders’ Meeting.
Group revenue amounted to €74,731 million in 2019, up by 1.0% compared to 2018. Automotive division revenue amounted to €58,943 million up by 0.7% versus 2018, mainly driven by product mix (+4.3%) and price (+1.2%), which offset the decrease of sales to partners (-1.7%), the negative impact of exchange rates (-0.5%), volumes and country mix (-2.4%) as well as others (- 0.2%).
Group adjusted operating income amounted to €6,324 million, up 11.2% with Automotive adjusted operating income up 12.8% at €5,037 million. This 8.5% strong profitability level was reached thanks to a positive product mix and further cost reductions despite exchange rate headwinds and raw material costs increases.
Group adjusted operating margin reached 8.5%, up 0.8 pt versus 2018. Other operating income and expenses amounted to -€1,656 million, compared to -€1,289 million in 2018.
Group net financial expenses decreased to -€344 million compared to -€446 million in 2018.
Consolidated net income reached €3,584 million, an increase of €289 million compared to 2018.
Net income, Group share, reached €3,201 million, up €374 million compared to 2018. Banque PSA Finance reported adjusted operating income of €1,012 million, up 7.8%.
Faurecia adjusted operating income was €1,227 million, down 2.9%.
The free cash flow of manufacturing and sales companies was €2,745 million of which €3,265 million for the Automotive division.
Total inventory, including independent dealers and importers, stood at 606,000 vehicles at 31 December 2019, down 74,000 vehicles compared to 31 December 2018.
The net financial position of manufacturing and sales companies was €7,914 million at 31 December 2019 after IFRS 16 effect and Clarion acquisition by Faurecia and including DFG share repurchase debt.
A dividend of €1.23 per share will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 21 May 2020, and the payment date on 25 May 2020.
Market outlook: in 2020, the Group anticipates a decrease by 3% of the automotive market in Europe and by 2% in Russia as well as a stable automotive market in Latin America.
Operational outlook: Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin on average for the period 2019-2021.
