ŠKODA AUTO achieves stable operating profit in the first 3 quarters, major burdens for the remainder of the year
In the first nine months of 2021, ŠKODA AUTO delivered 700,700 vehicles to customers worldwide despite the shortage of semiconductors (-2.9% compared to the same period last year).
Thanks to a strong first half-year, the ŠKODA AUTO Group* was able to generate a total operating profit of €900 million as of the end of September. ŠKODA AUTO’s sales revenue in the first three quarters of 2021 amounts to €13.329 billion, with a return on sales of 6.8%.
The significant reduction in production due to the chip shortages will have a notable impact on the fourth quarter. The company is countering with increased cost discipline and by launching a comprehensive efficiency programme.
“Since the third quarter, the semiconductor shortage and the limited availability of parts due to bottlenecks in the automotive supply chains have been a bitter setback for ŠKODA AUTO’s strong growth trajectory. Despite high demand and high order backlogs for our successful products, we have had to cut back our production. Against this background, however, we almost doubled our operating profit in the first three quarters compared to the previous year thanks to consistently managing the product mix and rigorously reducing costs despite the lower deliveries.
Alongside the Czech government, our social partner KOVO and the Volkswagen Group, we are working tirelessly on measures to overcome the semiconductor crisis and safeguard jobs at ŠKODA AUTO and our suppliers over the long term. In addition, we have launched a comprehensive efficiency programme aimed at mitigating the anticipated burden as much as possible.” – Christian Schenk, new ŠKODA AUTO Board Member for Finance and IT since 1 October 2021
“Demand for our cars remains high. Our all-electric ENYAQ iV, the new generation of the FABIA and the facelift of the KODIAQ have been very well received by our customers. At the same time, we do our utmost to deliver the cars to our customers as quickly as possible.” – Martin Jahn, ŠKODA AUTO Board Member for Sales and Marketing
Due to the shortage of semiconductors, the Czech car manufacturer will be significantly scaling back its production over the coming weeks. In collaboration with its social partner KOVO and suppliers, ŠKODA AUTO is working diligently to overcome the current challenges. The top priority is and remains to safeguard employees’ jobs long-term.
This year, the company expects that it will not be able to produce approximately 250,000 vehicles by the end of the year due to missing parts. The company anticipates that the situation regarding the supply of semiconductors will stabilise again from the fourth quarter 2021 onwards and will then gradually easing in the second half of 2022.
ŠKODA AUTO Group* – Quarterly comparison of key figures, January to September 2021/2020**:
|2021||2020||Change in %|
|Deliveries to customers||cars||700,700||721,900||-2.9%|
|Deliveries to customers excl. China||cars||648,000||597,000||8.5%|
|Sales revenue||million EUR||13,329||12,038||10.7%|
|Operating profit||million EUR||900||469||92.0%|
|Return on sales||%||6.8||3.9|
|Investments in tangible assets||million EUR||337||444||-24.1%|
|Net cash flow||million EUR||321||458||-29.9%|
ŠKODA AUTO delivers 700,700 vehicles worldwide in first nine months
The Czech carmaker delivered 700,700 vehicles to customers worldwide in the first three quarters (January to September 2020: 721,900 vehicles; -2.9%).
In Western Europe, ŠKODA AUTO recorded 326,400 deliveries in the first nine months of the year, 4.3% more than in the same period last year. In Germany, its largest single market worldwide, the company recorded 104,600 deliveries to customers in the first three quarters of 2021 (January to September 2020: 113,200 vehicles; -7.6%).
In Central Europe, the company delivered 132,600 vehicles in the first nine months of the year (January to September 2020: 134,700 vehicles; -1.5%). In its domestic market, the Czech Republic, ŠKODA’s deliveries to customers increased by 1.1% to 63,000 vehicles (January to September 2020: 62,300 vehicles).
In Eastern Europe excluding Russia, ŠKODA increased its deliveries to customers by 8.6% to 29,500 vehicles between January and September (January to September 2020: 27,200 vehicles).
In Russia, the manufacturer delivered 72,600 vehicles in the first three quarters of the year, outperforming the same period last year by 11.5% (January to September 2020: 65,200 vehicles).
In China, deliveries to customers dropped 57.8% to 52,700 units in the first three quarters of 2021 (January to September 2020: 124,900 vehicles).
In India, ŠKODA AUTO delivered 13,300 vehicles between January and September 2021, almost doubling last year’s figure (January to September 2020: 6,800 vehicles; +95.9%).
In Turkey, the brand recorded strong growth in vehicle deliveries of 38.9% (January to September 2021: 21,900 vehicles; January to September 2020: 15,800 vehicles).
ŠKODA brand deliveries to customers in the first three quarters of 2021 (in units, rounded off, listed by model; +/- in per cent compared to the first three quarters of 2020):
ŠKODA OCTAVIA (159,400; -15.9%)
ŠKODA KAMIQ (99,100; +9.4%)
ŠKODA KAROQ (96,600; +0.1%)
ŠKODA KODIAQ (82,600; -14.3%)
ŠKODA FABIA (82,200; +5.9%)
ŠKODA RAPID (52,400; -3.5%)
ŠKODA SUPERB (51,400; -15.7%)
ŠKODA SCALA (39,800; -14.0%)
ŠKODA ENYAQ iV (28,200; -)
ŠKODA KUSHAQ (only sold in India: 5,100; -)
ŠKODA CITIGOe iV (only sold in Europe: 3,900; -59.0%)
* ŠKODA AUTO Group comprises ŠKODA AUTO a.s, ŠKODA AUTO Slovensko s.r.o., ŠKODA AUTO Deutschland GmbH, SKODA AUTO Volkswagen India Private Ltd. and a share in the company OOO VOLKSWAGEN Group RUS.
** Percentage deviations are calculated from non-rounded figures.
*** Comprises production in the ŠKODA AUTO Group, excluding production at partner assembly plants in China, Slovakia, Russia and Germany, but including other Group brands such as SEAT, VW and AUDI; vehicle production excluding part/complete kits.
**** Comprises ŠKODA AUTO Group sales to distribution companies, including other Group brands such as SEAT, VW, AUDI, PORSCHE and LAMBORGHINI; vehicle sales excluding part/complete kits