Porsche AG's market cap, dividends, sales and earnings in 2020-2021

  •   DEHOUI Lionel

Founded in 1931 and based in Stuttgart, Germany, Porsche is a German company specialising in car manufacturing. It designs and markets sports, luxury and racing cars. In 2020, the group was not spared from the Covid-19 health crisis that affected the entire automotive sector. This affected the company's business in particular during the year.

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Porsche AG's market cap, dividends, sales and earnings in 2020-2021
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Overall point of the group's activity in 2020

In the twelve months of the 2020 financial year, Porsche AG's sales totalled 28.7 billion euros, compared with 28.5 billion euros in the previous year. This is an increase of more than 100 million euros year-on-year, a record for the group. The carmaker delivered a total of 272,162 cars worldwide.

A year earlier, the company had sold 280,800 units. Vehicle sales therefore fell slightly by 3% year-on-year. In the year under review, the German group recorded an operating profit of 4.2 billion euros, compared with 4.4 billion euros (excluding exceptional items) in 2019.

After exceptional items, it was €3.9 billion in the previous year. In 2020, the operating profitability rate was 14.6%. This value is in line with the group's strategic objectives. This is despite the difficult economic situation caused by the coronavirus health crisis.

Pre-tax profit in 2020 was 4.4 billion euros. Moreover, during this year, the company was forced to temporarily stop production. Despite this, the results of the operational activity are almost equivalent to those recorded in the previous year.

 

Sales performance in fiscal year 2020

German car manufacturer Porsche has recorded better vehicle sales figures in the 2020 financial year. Furthermore, the number of cars delivered in this year shows the strong global positioning of the brand. More generally, deliveries of sports cars to customers have been stable.

The best-selling model during the year was of course the Cayenne, with sales reaching 92,860 units. Year-on-year sales increased by 1 percent. The group delivered 20,015 units of Taycan models in 2020. This figure was achieved despite a six-week production shutdown in the spring.

China remained the group's largest market in 2020. The Stuttgart-based company delivered 88,968 cars to the country this year as a whole, which represents a growth of 3 percent compared to the previous year. In addition, good sales momentum continued in the Asia-Pacific, Middle East and Africa regions.

In these regions, the total number of vehicles delivered reached 121,641 units in 2020, an increase of 4 per cent compared to 2019. In Europe, Porsche vehicle deliveries are estimated at a total of 80,892 units for the full year under review. In contrast, the German group delivered 69,629 cars in America.

Furthermore, it should be noted that the brand's development is becoming more precise thanks to electric vehicles. In this sense, the car manufacturer continues to increase the production of electrified vehicles. This model of car now represents 17% of the brand's worldwide deliveries.

 

Carbon neutrality target by 2030

As part of its contribution to the fight against global warming, the German automotive group has set up a vast decarbonisation programme. The company's main objective in this plan is to achieve carbon neutrality throughout its value chain by 2030.

To achieve this, the group intends to reduce or even eliminate its CO2 emissions. Since 2021, some of the manufacturer's main sites have been carbon neutral. This is the case for the Leipzig, Zuffenhausen and Weissach plants. In the programme that has been set up, Porsche AG plans to invest more than one billion euros in decarbonisation (over the next ten years).

By the year 2020, one third of the vehicles sold by the brand (in Europe) will be 100% or partially electric. In its ambitions for the future, the group plans to deliver cars with an electric engine by 2025. Half of the new vehicles sold this year should be electric.

 

About Porsche's dividend and market capitalisation

Porsche AG is one of the companies in the automotive sector that pays a dividend to its shareholders. For the past 12 years, the Stuttgart-based company has paid out this coupon. For the financial year 2020, the dividend paid by the company is 5,320 euros per share.

In the financial markets, Porsche AG is one of the most closely watched stocks. The company is listed on the General Standard of the Deutsche Boerse AG in Germany. It is also among the companies that make up the German DAX 30 stock market index. As of November 2021, its market capitalisation is estimated to be over 20 billion euros.

 

Porsche and Ferrari share comparison on 2020 results

The Ferrari Group is one of the competitors of the German manufacturer Porsche in the automotive market. During 2020, both companies were impacted by the Covid-19 pandemic. However, the effects of the health crisis were more significant for the Italian company.

This is illustrated in particular by the level of its turnover, which fell by 8.1% to 3.46 billion euros in 2020. In contrast, the German group's turnover increased over the year to 28.7 billion euros. On the other hand, the number of vehicles delivered by Ferrari during the year (9,119 units) is lower than that reported by Porsche (272,162 units).

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