Daily Management Review

PSA Group reaches record profitability


In the first half of the year, the French automobile concern PSA Group (Peugeot, Citroen, DS, Opel and Vauxhall brands) reported an increase in total operating profit by 10.6% to € 3.34 billion, and operating profit of the automotive division by 12.6 %, to € 2.7 billion. Due to this, the company's profitability grew to a record level of 8.7%.

“Our results confirm sustainability of our performance, despite the weakness of global markets,” said Philippe de Rovira, CFO of PSA Group, in connection with this. “These negative factors are more than offset by our efficiency and cost-cutting efforts.”

PSA Group's revenues declined in six months by 0.7% to € 38.3 billion. Net profit attributable to shareholders grew by 24% to € 1.8 billion. The concern managed to achieve record-breaking profitability despite a decline in global sales cars, of which PSA Group warned in mid-July. In the first six months of 2019, the concern sold 12.8% fewer cars than during the same period a year earlier due to the collapse in sales in the Chinese market and the withdrawal of PSA Group from the Iranian market.

source: bloomberg.com