Volvo Cars Q3 results: Momentum continues while performing

Volvo Cars today reports an almost 75 per cent increase in operating profits, excluding joint ventures and associates, to SEK 6.1 bn for the third quarter of 2023. The EBIT (operating) margin excluding joint ventures and associates came in at 6.7 per cent, compared to a margin of 4.4 per cent in the same period last year. The company saw strong sales and revenue growth during the quarter, which in combination with lower costs for raw materials and logistics, resulted in a solid underlying operating profit.

“Our operating performance is gathering momentum, while we continue to make steady progress on our transformation objectives,” said Jim Rowan, president and chief executive of Volvo Cars. “As such the quarter developed as we planned and communicated, putting us in a good position to close out the year with solid double-digit growth in retail volumes and a considerably higher share of fully electric cars for the full year. At the same time, uncertainties remain on the horizon, and we continue to be watchful.”

Q3 operating and financial performance

The solid operational performance and good momentum was reflected in the company’s key operational indicators. Production volumes in the third quarter were up by 16 per cent versus the same period a year ago, as availability and visibility continued to improve in the supply chain.

Commercially, Volvo Cars’ order book remained stable and the company managed to maintain premium pricing. Its strong brand position, based on safety, quality and Scandinavian design, has proven to be a real asset in maintaining its premium pricing position. As a result, the company booked a revenue for the quarter of SEK 92 billion, up 16 per cent compared to the same period last year.

Looking ahead

The performance for the third quarter puts Volvo Cars in a position to close out the year in line with earlier communications: solid double-digit growth in retail volumes for the full year and an increased share of fully electric cars versus 2022.

This positions the company well for a fast start in 2024, when it will bring three new fully electric models on the roads. Deliveries of the EX30 to customers are starting soon and on November 12 it will reveal the Volvo EM90, the company’s first ever premium multi-purpose vehicle (MPV). That means that in less than six months, Volvo Cars will have unveiled two brand new cars into two new segments, on top of the EX90 revealed late last year.