Luxury German automaker Porsche has published its 2023 outlook, predicting it will earn nearly 20% back on sales.
The optimistic forecast arrives just after Porsche revealed record-breaking earnings for 2022. Last year, the brand made 309,884 deliveries, 2.6% more than in 2021, while its operating profit grew 27% year-over-year to a total of 6.77 billion euros or $7.23 billion. Ultimately, the automaker finished the year with an admirable 18% profit margin. Speaking to CNBC, CEO Oliver Blume attributed these numbers to “a very positive product mix,” efficient cost work and helpful currency effects.
Due to these successes, the brand now expects to achieve a return on sales rate between 17% and 19%, while making 40 to 42 billion euros in revenue. In the future, Porsche executives hope for as much as 20%. However, Lutz Meschke, member of the executive board for finance and IT, prefaces the forecasts within the 2023 outlook by noting that they are dependent on whether or not the “economically challenging conditions further intensify significantly.”
While not entirely escaping the economic complications with which the rest of the industry has struggled, the luxury market has proven to be far more resilient than many expected. Although prices in the segment have fallen more than others, profit margins and operating costs for most brands have either held stable or grown rapidly. Customers are also more likely to be satisfied with their purchase and dealership experience when they buy from a luxury manufacturer. Buyers ranked Lexus, Porsche and Cadillac highest on J.D. Power’s most recent Customer Service Index study overall, well ahead of most mass-market and premium brands. However, Porsche is not the only automaker with an optimistic forecast riding on the chances of a peaceful market throughout 2023. While January and February saw unseasonably strong new-vehicle sales numbers, it remains to be seen whether the remainder of the year will go as smoothly as luxury brands predict.