Modupe Gbadeyanka
By Modupe Gbadeyanka
The 2017 financial year was a great one for automaker, Groupe PSA, which boasts of five leading car brands in the world; Peugeot, Citroën, DS, Opel and Vauxhall.
In its 2017 earnings, the group achieved historic results with 15.4 percent increase in its sales at 3.63 million vehicles sold in the period under review, while the revenue appreciated by 20.7 percent to €65.2 billion.
In 2017, group revenue amounted to €65,210 million compared to €54,030 million in 2016 up 20.7 percent. At constant 2015 exchange rates and perimeter, 2017 Group cumulated revenue was up 12.9 percent. PCD Automotive division revenue amounted to €40,735 million up by 9.9 percent compared to 2016.
This increase, according to the firm, was mainly driven by the product mix (+4.5 percent) and the volume and country mix (+4.9 percent) improvement linked to the worldwide success of the group’s new models that more than compensated the negative impact of exchange rates (-1.6 percent). OV Automotive division revenue amounted to €7,238 million in 2017.
Group recurring operating income amounted to €3,991 million, up 23.4 percent compared to 2016, while PCD Automotive recurring operating income grew by 33.3 percent compared to 2016 at €2,965 million.
This 7.3 percent record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions.
In addition, OV Automotive recurring operating income amounted to a €179 million loss in 2017.
Furthermore, group recurring operating margin excluding OV stood at 7.1 percent versus 6% in 2016 and the group recurring operating margin with OV stood at 6.1 percent.
Consolidated net income reached €2,358 million, an increase of €209 million compared to 2016, while the net income, group share, reached €1,929 million compared to €1,730 million in 2016.
It was gathered that consolidated sales in the Middle East & Africa region up a sharp 61.4 percent year-on-year at 618,800 units, of which 26,800 for the OPEL brand, while the group’s overall market share in the region came in at 11.6 percent and has steadily risen since 2015, on target with the Push to Pass plan objective of selling 700,000 vehicles by 2021.
Groupe PSA has continued its product offensive in the region, where it has successfully launched the new CITROËN C3, the new PEUGEOT 3008 SUV, and the new PEUGEOT Pick Up, which marks the brand’s history-making return to its legitimate place in the segment.
OPEL is in the midst of a product offensive in the region having recently launched the new Insignia and Crossland X and with the launch of the new Grandland X slated for early 2018.
For the DS brand, 2017 marked the development of a dealer network across the region ahead of the market launch of the DS 7 CROSSBACK in the coming months.
The Group continued to expand its manufacturing base, breaking ground on the Kenitra plant in Morocco, starting up local production in Kenya and Ethiopia, and signing a memorandum of understanding to set up a new plant in Oran, Algeria.
Furthermore, 7.3 percent Peugeot Citroën DS (PCD) Automotive division recurring operating margin was at a record level, while 7.1% of the Group recurring operating margin, excluding OV and 6.1 percent including OV with a Group recurring operating income was at €3,991 million.
In the period, the company recorded 11.5 percent increase of Net result group share and €1.56 billion positive operational free cash flow.
Commenting on the results, Chairman of Groupe PSA, Mr Carlos Tavares, stated that, “Peugeot Citroën DS outstanding results, making significant progress for the 4th year in a row, are the proof of our ability to deliver a profitable and sustainable growth.
“Our agile, customer focused and socially responsible approach is making the difference. The acquisition of Opel Vauxhall is a great opportunity to boost value creation.”
A dividend of €0.53 per share will be submitted for approval at the next Shareholders’ Meeting, the company said.
