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Groupe PSA achieves strong profitability in H1 2019

Group revenue amounted to €38,340 million in the first half of 2019

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “Thanks to our focus on our strategic plan execution, we have delivered strong Free Cash Flow and Recurring Operating Margin in H1. We are ready for electrification and to embrace the next technological challenges. Our agility and aligned management team remain key assets to reach the targets of the Push to Pass plan.”

Group revenue amounted to €38,340 million in the first half of 2019, down by 0.7% compared to 2018 H1. Automotive division revenue amounted to €30,378 million down by 1.1% versus 2018 H1, mainly driven by product mix (+2.9%) and price (+1.3%), which partially offset the decrease of sales to partners (-2.2%), the negative impact of exchange rates (-0.8%), volumes and country mix (-1.4%) as well as others (-0.9%).

Group recurring operating income amounted to €3,338 million, up 10.6% with Automotive recurring operating income up 12.6% at €2,657 million. This 8.7% strong profitability level was reached thanks to a positive product mix and further cost reductions, despite exchange rate headwinds.

Group recurring operating margin reached 8.7%, up 0.9 pt versus 2018 H1.

Group non-recurring operating income and expenses amounted to -€847 million, compared to -€750 million in 2018 H1.

Group net financial expenses decreased to -€166 million compared to -€218 million in 2018 H1.

Consolidated net income reached €2,048 million, an increase of €335 million compared to 2018 H1. Net income, Group share, reached €1,832 million, up €351 million compared to 2018 H1.

Banque PSA Finance reported recurring operating income of €513 million[5], up 0.6%.

Faurecia recurring operating income was €634 million, down 1.2%.

The free cash flow of manufacturing and sales companies was €1,599 million of which €2,287 million for the Automotive division.

Total inventory, including independent dealers and importers[6], stood at 659,000 vehicles at 30 June 2019, at the same level as 30 June 2018.

The net financial position of manufacturing and sales companies was €7,906 million at 30 June 2019 after IFRS 16 effect and Clarion acquisition by Faurecia.

Market outlook: in 2019, the Group anticipates a decrease by 1% of the automotive market in Europe, by 4% in Latin America and by 7% in China and growth of 3% in Russia.

Operational outlook:

Groupe PSA has set the target to deliver over 4.5% Automotive recurring operating margin[7] on average for the period 2019-2021.


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