Porsche warns of fall in profitability but hikes dividend on strong 2023 results

The German luxury automaker recently stated that it anticipates a decline in profitability in 2024 due to the launch of new models amidst challenging economic conditions. However, it did raise its dividend following a rise in operating profit in 2023. The company aims for an operating return on sales of 15% to 17% in 2024, lower than the 18% achieved in 2022 and 2023. This more cautious outlook is attributed to the comprehensive renewal of its product range, global conditions, higher depreciations on development costs, and continued investments in the Porsche brand and ecosystem. Porsche plans to introduce four new car ranges in 2024. Despite the decline in profitability, the company remains confident in its resilience, profitability, and balanced sales structure. Parent company Volkswagen also warned of slowing sales growth due to weaker economic conditions, increased competition, and rising costs.