Skoda Auto sees bumpy road ahead

Hyderabad: Skoda Auto increased its earnings in the past fiscal year compared to 2020 despite the pandemic and the shortage of semiconductors. The Skoda Auto Group's revenue amounts to 17.7 billion euros (2020: 17.1 billion euros; up 3.9 per cent). Operating profit increased significantly year-on-year to 1.08 billion euros(2020: 756 million euros; up 43.2 per cent). The return on sales is recovering at 6.1 per cent, it is significantly above the previous year. The company anticipates major uncertainties as the year progresses due to the war in Ukraine and the associated supply bottlenecks.

Thomas Schafer, chief executive officer, Skoda Auto, said: "Our business is robust – and this is also reflected in the key financial figures, which have developed positively compared to the previous year.

With a great team effort by all 45,000 Skodians, we managed to deliver 878,200 vehicles to customers worldwide. Our all-electric ENYAQ iV significantly exceeded our expectations with almost 45,000 units delivered. We are building on this strong momentum with new models including the emotive ENYAQ Coupe iV, the refreshed KAROQ and the sporty Fabia Monte Carlo.

At the same time, we face great uncertainties due to the war in Ukraine. We are continuously analysing the impact of this on our business." The company increased its net cash flow by 160 per cent to 554 million euros. After a strong first half-year, the chip shortage led to restrictions in production as the year progressed. Thanks to focused sales management, optimising the production mix and the sale of vehicles with higher-value equipment, revenue in 2021 surpassed the previous year's performance despite lower deliveries.