The Groupe PSA, which specializes in the design of unique automotive experiences and delivers mobility solutions to meet all client expectations has posted a historic 2017 financial results.
The Group, which has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall, as well as a wide array of mobility and smart services under its Free2Move brand and aiming to become a great carmaker and the preferred mobility provider recorded 15.4% increase of Group sales at 3.63 million vehicles, 20.7% Group revenue growth at €65.2 billion, 7.3% Peugeot Citroën DS (PCD) Automotive division recurring operating margin at a record level, 7.1% Group recurring operating margin4 excluding OV and 6.1% including OV with a Group recurring operating income at €3,991 million, 11.5% increase of Net result group share and €1.56 billion positive operational free cash flow.
Carlos Tavares, Chairman of Groupe PSA Managing Board said: “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.
In 2017, Group revenue amounted to €65,210 million compared to €54,030 million in 2016 up 20.7%. At constant 2015 exchange rates and perimeter, 2017 Group cumulated revenue was up 12.9% . PCD Automotive division revenue amounted to €40,735 million up by 9.9% compared to 2016. This increase was mainly driven by the product mix (+4.5%) and the volume and country mix (+4.9%) improvement linked to the worldwide success of the Group’s new models that more than compensated the negative impact of exchange rates (-1.6%). OV Automotive division revenue amounted to €7,238 million in 20172.
Group recurring operating income amounted to €3,991 million, up 23.4% compared to 2016. PCD Automotive recurring operating income grew by 33.3% compared to 2016 at €2,965 million. This 7.3% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions. OV Automotive recurring operating income amounted to a €179 million loss in 20172.
Group recurring operating margin excluding OV stood at 7.1% versus 6% in 20164 and Group recurring operating margin with OV stood at 6.1%.
Consolidated net income reached €2,358 million, an increase of €209 million compared to 2016. Net income, Group share, reached €1,929 million compared to €1,730 million in 2016.
In the Middle East & Africa, profitable growth ahead of targets
Consolidated sales in the Middle East & Africa region up a sharp 61.4% year on year at 618,800 units, of which 26,800 for the OPEL brand.
The Group’s overall market share in the region came in at 11.6% 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.