- Q1 revenue was SEK 93.9 bn (SEK 95.7 bn in Q1 2023)
- Q1 operating income (excl. JVs and associates) was SEK 6.8 bn (SEK 6.3 bn in Q1 2023)
- Q1 EBIT margin (excl. JVs and associates) was 7.2 per cent (6.6 per cent in Q1 2023)
- Q1 Basic earnings per share was SEK 1.12 (SEK 1.21 in Q1 2023)
- Q1 fully electric car sales share at 21 per cent (18 per cent in Q1 2023)
Volvo Cars today reports an operating profit (EBIT) excluding joint ventures and associates of SEK 6.8 billion for the first quarter of 2024, an increase of 8 per cent versus the same period in 2023. The corresponding EBIT margin came in at 7.2 per cent, up from 6.6 per cent a year earlier.
During the first quarter, retail sales rose by 12 per cent year-on-year to 182,687 cars, with a new all-time sales record for a single month in March. A strong performance in Europe and the US contributed to the company’s sales growth, and it recorded new sales records for the first quarter in 11 markets, including in Germany, France, the Netherlands, Canada and Turkey.
Revenue for the period came in at SEK 93.9 billion, versus the SEK 95.7 billion reported in Q1 2023. This was primarily due to lower revenue from contract manufacturing. In addition, some foreign exchange effects as well as the company’s sales mix affected revenues, although the company maintained a healthy price discipline.
41 per cent of Volvo Cars’ global volume during the quarter consisted of plug-in hybrid (PHEV) and fully electric (EV) cars, while its EV share of sales rose to 21 per cent from 18 per cent a year earlier. This demonstrates that the company is on track towards its annual sales target of at least 15 per cent growth in 2024, with a balanced premium product strategy that offers competitive EVs alongside attractive plug-in and mild hybrids. In Europe, Volvo Cars was the third largest brand in EV sales, while the XC60 PHEV was the best-selling plug-in hybrid in the region during the first quarter.
First-quarter gross margins on the company’s EVs improved to 16 per cent from 7 per cent in the same quarter last year, which is among the best in the industry. This reflects the strong customer demand for the new Volvo EX30 SUV, which is set to bring in gross margins of 15-20 per cent, as well as improved margins on the EX40 and EC40 models. Volvo Cars will continue to work diligently to further close the margin gap with combustion engine-powered cars.
“We have had a strong start to the year, with our first quarter results laying a solid foundation for the year ahead,” says Jim Rowan, chief executive officer of Volvo Cars. “We reported double-digit retail sales growth during the quarter, set a new all-time sales record for a single month in March and continued to ramp up production and customer deliveries of the EX30. We delivered improved EV gross margins, which reached 16 per cent, and increased our EV share of sales to 21 per cent. “
“At the same time, we secured shareholder support to distribute a majority of our shareholding in Polestar, allowing us to fully focus on our core operations,” adds Jim Rowan. “We remain focused on costs and capital allocation to ensure cash and liquidity are at a healthy level. I am confident these actions will make 2024 another milestone year in our ongoing transformation.”
EX30 as a crucial growth driver
