Volvo Group - the first quarter 2023

Rhea-AI Summary

On April 20, 2023, Volvo Group reported a strong performance for Q1 2023, with net sales soaring by 25% to SEK 131.4 billion, marking the highest first-quarter revenue in the company's history. Adjusted operating income increased by SEK 5.7 billion to SEK 18.4 billion, achieving an adjusted operating margin of 14.0%. The return on capital employed rose significantly to 30.3%. Despite a restructuring provision negatively impacting earnings within the Buses segment, the overall financial results were bolstered by favorable currency movements, adding SEK 1.669 billion to operating income. Earnings per share also saw a notable rise to SEK 6.35 from SEK 3.46. The company continues to invest heavily in technological advancements, focusing on electric and hybrid vehicle solutions.

Positive

• Net sales increased by 25% to SEK 131.4 billion.
• Adjusted operating income rose to SEK 18.4 billion, a SEK 5.7 billion increase.
• Adjusted operating margin improved to 14.0%.
• Return on capital employed climbed to 30.3%.
• Earnings per share increased to SEK 6.35 from SEK 3.46.
• Operating cash flow improved to SEK 5,004 million from a negative SEK 5,400 million.

Negative

• Restructuring provision in Buses had a negative effect of SEK 1,300 million on adjusted operating income.

News Market Reaction – VLVLY

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GOTHENBURG, Sweden, April 20, 2023 /PRNewswire/ -- "During Q1 2023, the Volvo Group's growth continued and our profitability took a step up. Sales increased in all business areas and in all regions. Net sales rose by 25% to SEK 131.4 billion, the highest so far for a first quarter. We increased the adjusted operating income by SEK 5.7 billion to SEK 18.4 billion, corresponding to a margin of 14.0% (12.0). Return on capital employed rose to 30.3% (25.3). A good profitability is important for us to be able to continue to increase our investments in the biggest technological shift ever in our industries. We are in a period when we are investing battery and fuel cell electric vehicles as well as internal combustion engines in parallel," says Martin Lundstedt, President and CEO.

• In Q1 2023, net sales increased by 25% to SEK 131.4 billion (105.3). Adjusted for currency movements, the increase was 17%.
• Adjusted operating income amounted to SEK 18,409 M (12,681), corresponding to an adjusted operating margin of 14.0% (12.0). Adjusted operating income excludes a negative effect of SEK 1,300 M from a restructuring provision in Buses.
• Reported operating income amounted to SEK 17,109 M (8,556).
• Currency movements had a positive impact on operating income of SEK 1,669 M.
• Earnings per share amounted to SEK 6.35 (3.46).
• Operating cash flow in the Industrial Operations amounted to SEK 5,004 M (-5,400).
• Return on capital employed in Industrial Operations amounted to  30.3% (25.3).

Press and Analyst Conference Call

An on-line presentation of the report, followed by a question and answer session will be webcast starting at 09.00 CET.

More information, including an interview with CEO Martin Lundstedt, is available on https://www.volvogroup.com/en/investors.html

April 20, 2023

Aktiebolaget Volvo (publ) 556012-5790

Investor Relations
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00
www.volvogroup.com

Contact Media Relations:
Claes Eliasson  +46 765 53 72 29

Contacts Investor Relations:
Christer Johansson  +46 739 02 25 22
Johan Bartler  +46 739 02 21 93
Anders Christensson  +46 765 53 59 66

For more information, please visit volvogroup.com 
For frequent updates, follow us on Twitter: @volvogroup

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2022, net sales amounted to SEK 473 billion (EUR 45 billion). Volvo shares are listed on Nasdaq Stockholm.

The following files are available for download:

https://mb.cision.com/Main/39/3754378/1996362.pdf	Volvo Group Q1 2023
https://news.cision.com/ab-volvo/i/volvogroup-q12023-1860x1050,c3168725	VolvoGroup-Q12023-1860x1050
https://mb.cision.com/Public/39/3754378/8e0004025a06a7bd.pdf	230420-volvo-group-volvo-group- the-first-quarter-2023-en

 

View original content:https://www.prnewswire.com/news-releases/volvo-group--the-first-quarter-2023-301802669.html

SOURCE AB Volvo

FAQ

What were Volvo Group's net sales for Q1 2023?

Volvo Group's net sales for Q1 2023 were SEK 131.4 billion.

How much did Volvo Group's adjusted operating income increase in Q1 2023?

Volvo Group's adjusted operating income increased by SEK 5.7 billion to SEK 18.4 billion.

What is the adjusted operating margin reported by Volvo Group for Q1 2023?

The adjusted operating margin reported by Volvo Group for Q1 2023 is 14.0%.

What was the return on capital employed for Volvo Group in Q1 2023?

The return on capital employed for Volvo Group in Q1 2023 was 30.3%.

How did currency movements impact Volvo Group's operating income?

Currency movements positively impacted Volvo Group's operating income by SEK 1.669 billion.

What is the earnings per share for Volvo Group in Q1 2023?

Earnings per share for Volvo Group in Q1 2023 amounted to SEK 6.35.