Skoda posts 74.9% surge in operating profit in first half of 2014

Article by Andrew Christian, on August 6, 2014

Skoda posted a 12-percent jump in global deliveries in the first half of 2014 to 522,500. The Czech carmaker also posted a 20.3-percent rise in sales revenue to EUR5.974 billion in the first six months of 2014, compared to EUR4.966 billion in the same period last year. Skoda also logged a 74.9-percent climb in operating profit to EUR425 million.

Skoda chief executive Winfried Vahland remarked that the carmaker did very well in the first half of 2014 and continues on a stable path of growth. He remarked that the brand’s model campaign is showing its full power, and has even allowed Skoda to conquer new consumer groups.

He noted that the Octavia has been a great hit among consumers, adding that it has exceeded their expectations. Vahland said Skoda intends to continue along this “path of growth” and continue its most comprehensive product campaign in its corporate history.

The Czech carmaker saw its operating margin surge to 7.1 percent in the first half of 2014, compared to 4.9 percent in the same period last year. Skoda attributed the hike in profit partly to the higher number of deliveries and to the enhanced model line-up as well as more favorable product costs.

The company saw its net liquidity jump 41.9 percent to EUR1.855 billion while investments were just EUR149 million in the first six months of 2014.

Skoda chief financial officer Winfried Krause remarked that the carmaker has grown profitably in the first half of the year, adding that investments into new models are paying off. The higher net liquidity also shows Skoda’s financial strength. For the full year 2014, Skoda is expecting surges in sales, sales revenue and profit. [source: Skoda]

Topics: skoda, profit

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