[Auto]Volvo Cars achieves the best results in its history in a second half

[SougarLord]

 

During the last 6 months of 2020, Volvo Cars had revenue of SEK 151 billion and an operating result of SEK 9.5 billion. This means that profits increased 8.2 percent and revenue 4.9 percent. The profit margin reached a solid 6.3 percent.

 

These results reflect the best second half of sales in the history of the company, thanks to strong demand for the Recharge range of rechargeable vehicles. From July to December 2020, Volvo Cars sold 391,751 vehicles, representing a growth of 7.4 percent over the same period in 2019. Market share increased in most countries.

 

For the full financial year 2020, Volvo Cars announced a profit of SEK 263 billion and an operating result of SEK 8.5 billion. The reduction in fixed costs, combined with growth, has had a positive impact on cash flow and liquidity.

 

"We have acted decisively to limit the impact of the pandemic," said Håkan Samuelsson, CEO. "Once we safely resumed operations, we achieved a remarkable recovery that has led to the best second half in company history. It is also encouraging to see the rapid growth in demand for our Recharge range of rechargeable vehicles, which we hope will continue in 2021. "

 

The share of Recharge vehicles as a percentage of total sales was more than double in 2020 than in 2019. In Europe, plug-in hybrids accounted for 30 percent of sales, making Volvo the number one premium plug-in vehicle brand in terms of percentage of total sales. Also in the United States, Volvo was one of the leading plug-in hybrid brands on the market.

 

In China and the United States, the main markets of the company, Volvo has announced an increase in sales during the full financial year of 2020, since in the second half of the year it managed to overcome the fall suffered in the first half of the year due to the pandemic. In Europe, the second half of the year ended with a slight decrease as a consequence of the general sluggishness of the market.

 

Also as a result of the pandemic, Volvo Cars recorded an increase in online sales in 2020, an evolution that is expected to continue in 2021. The number of subscriptions sold through the online channel more than doubled in 2020 compared to 2019. Deposit rates through this channel were high throughout the period and have contributed to increasing market share.

 

By 2021, the company expects continued growth in sales and revenue thanks to its powerful product offering and increased online sales. If market conditions continue to normalize, this growth, added to the maintenance of the cost control policy, is expected to improve profitability to pre-coronavirus levels.

 

With the current level of investment in new technologies and products, the company expects capital expenditures similar to that of 2020. Cash flow is expected to remain high. A continued decrease in CO2 emissions per vehicle is also expected, in line with the company's goal of reducing them by 40 percent by 2025.

 

In this link you can consult all the information about the economic results of Volvo Cars.