New profitability record in 2019 for Groupe PSA

France
Published:  27 February, 2020
Picture: All new Peugeot 508 SW

The automotive company has posted record results for 2019, with a generated group revenue of €74,731 million in 2019, up by 1% 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, while other operating income and expenses amounted to €1,656 million, compared to €1,289 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. Faurecia adjusted operating income was €1,227 million, down 2.9%.

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.”

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. Groupe PSA has set the target to deliver over 4.5% adjusted operating margin on average for the period 2019-21.