Source: Motorpress / Peugeot South Africa
Groupe PSA achieved a new profitability record in 2019
Groupe PSA consolidated financial statements for the year ended 31 December 2019 were approved by the Managing Board on 25 February 2020 and reviewed by the Supervisory Board on 25 February 2020.
Group adjusted operating margin reached 8.5%, up 0.8 pt versus 2018.
Carlos Tavares, Chairman of Groupe PSA Managing Board said: “Our skilled and committed teams made the difference once again and we have achieved record results in 2019, driven by our agile, customer focused and socially responsible approach. We are ready for the energy transition and all teams are focused to offer a clean, safe and affordable mobility for customers. Based on our business model and fighting spirit which has proved to be efficient, we are eager to enter a new era with the projected merger with FCA.”
A dividend of €1.23 per share[3] will be submitted for approval at the next Shareholders’ Meeting
Group revenue amounted to €74,731 million in 2019, up by 1.0% compared to 2018. Automotive division revenue amounted to €58,943 million up by 0.7% versus 2018, mainly driven by product mix (+4.3%) and price (+1.2%), which offset the decrease of sales to partners (-1.7%), the negative impact of exchange rates (-0.5%), volumes and country mix (-2.4%) as well as others (-0.2%).
Group adjusted operating income[4] amounted to €6,324 million, up 11.2% with Automotive adjusted operating income up 12.8% at €5,037 million. This 8.5% strong profitability level was reached thanks to a positive product mix and further cost reductions despite exchange rate headwinds and raw material costs increases.
Group adjusted operating margin reached 8.5%, up 0.8 pt versus 2018.
Other operating income and expenses amounted to -€1,656 million, compared to -€1,289 million in 2018.
Group net financial expenses decreased to -€344 million compared to -€446 million in 2018.
Consolidated net income reached €3,584 million, an increase of €289 million compared to 2018. Net income, Group share, reached €3,201 million, up €374 million compared to 2018.
Banque PSA Finance reported adjusted operating income of €1,012 million[5], up 7.8%.
Faurecia adjusted operating income was €1,227 million, down 2.9%.
The free cash flow of manufacturing and sales companies was €2,745 million of which €3,265 million for the Automotive division.
Total inventory, including independent dealers and importers[6], stood at 606,000 vehicles at 31 December 2019, down 74,000 vehicles compared to 31 December 2018.
Banque PSA Finance reported adjusted operating income of €1,012 million[5], up 7.8%.
Faurecia adjusted operating income was €1,227 million, down 2.9%.
The free cash flow of manufacturing and sales companies was €2,745 million of which €3,265 million for the Automotive division.
Total inventory, including independent dealers and importers[6], stood at 606,000 vehicles at 31 December 2019, down 74,000 vehicles compared to 31 December 2018.
The net financial position of manufacturing and sales companies was €7,914 million at 31 December 2019 after IFRS 16 effect and Clarion acquisition by Faurecia and including DFG share repurchase debt.
A dividend of €1.23 per share[7] will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 21 May 2020, and the payment date on 25 May 2020.
Market outlook: in 2020, the Group anticipates a decrease by 3% of the automotive market in Europe and by 2% in Russia as well as a stable automotive market in Latin America.
Operational outlook:
Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin[8] on average for the period 2019-2021.
Link to the presentation of 2019.
Financial Calendar
21 April 2020: First-quarter 2020 revenue
14 May 2020: Shareholders’ Meeting
28 July 2020: 2020 interim results
28 October 2020: Third-quarter 2020 revenue
Groupe PSA consolidated financial statements for the year ended 31 December 2019 were approved by the Managing Board on 25 February 2020 and reviewed by the Supervisory Board on 25 February 2020. The audit procedures on the consolidated accounts were carried out by the Group's Statutory Auditors. Their certification report is being issued. The report on the annual results and the presentation of the 2019 results can be consulted on the Group’s website (www.groupe-psa.com), in the “Finance” section.
Appendix
Consolidated Income Statement
(en millions d’euros)
2018
2019
Revenue
74,027
74,731
Adjusted operating Income
5,689
6,324
Operating income
4,400
4,668
Net financial income (expense)
(446)
(344)
Income taxes
(615)
(716)
Share in net earnings of companies at equity
(44)
(24)
Consolidated profit
3,295
3,584
Attributable to owners of the parent
2,827
3,201
attributable to non-controlling interests
468
383
Basic earnings per €1 par value share attributable to equity holders of the parent
3.16
3.58
Diluted earnings per €1 par value share – attributable to equity holders of the parent
3.01
3.40
Assets
(in million euros)
31 December 2018
31 December 2019
Total non-current assets
33,806
38,439
Total current assets
28,146
31,327
TOTAL ASSETS
61,952
69,766
Equity and liabilities
(in million euros)
31 December 2018
31 December 2019
Total equity
19,594
21,801
Total non-current liabilities
12,356
16,265
Total current liabilities
30,002
31,700
TOTAL EQUITY & LIABILITIES
61,952
69,766
in million euros)
2018
2019
Consolidated profit from continuing operations
3,295
3,584
Funds from operations
6,734
7,573
Net cash from (used in) operating activities of continuing operations
8,395
8,705
Net cash from (used in) investing activities of continuing operations
(4,739)
(5,972)
Net cash from (used in) financing activities of continuing operations
(7)
(309)
Effect of changes in exchange rates
(44)
(21)
Increase (decrease) in cash from continuing operations and from operations held for sale or to be continued in partnership
3,605
2,403
Net cash and cash equivalents at beginning of period
11,797
15,402
Net cash and cash equivalents of continuing operations at end of period
15,402
17,805
[1] Adjusted operating income related to revenue
[2] Automotive Division (PCDOV)
[3] Dividend per share calculated on the basis of the total number of outstanding shares of the company minus the treasury shares of the company as of 25 February 2020. The actual dividend per share will depend on the number of treasury shares held at the ex-dividend date and any shares issued or cancelled prior to this date.
[4] Adjusted operating income (loss) excludes from Operating income certain adjustments comprising Restructuring costs, Impairment of CGU’s and Other operating income (expense) considered rare or discrete events and are infrequent in nature.
[5] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.
[6] Including Peugeot importers outside Europe
[7] Dividend per share calculated on the basis of the total number of outstanding shares of the company minus the treasury shares of the company as of 25 February 2020. The actual dividend per share will depend on the number of treasury shares held at the ex-dividend date and any shares issued or cancelled prior to this date.
[8] Automotive Division (PCDOV) adjusted operating income related to revenue
A dividend of €1.23 per share[3] will be submitted for approval at the next Shareholders’ Meeting
Group revenue amounted to €74,731 million in 2019, up by 1.0% compared to 2018. Automotive division revenue amounted to €58,943 million up by 0.7% versus 2018, mainly driven by product mix (+4.3%) and price (+1.2%), which offset the decrease of sales to partners (-1.7%), the negative impact of exchange rates (-0.5%), volumes and country mix (-2.4%) as well as others (-0.2%).
Group adjusted operating income[4] amounted to €6,324 million, up 11.2% with Automotive adjusted operating income up 12.8% at €5,037 million. This 8.5% strong profitability level was reached thanks to a positive product mix and further cost reductions despite exchange rate headwinds and raw material costs increases.
Group adjusted operating margin reached 8.5%, up 0.8 pt versus 2018.
Other operating income and expenses amounted to -€1,656 million, compared to -€1,289 million in 2018.
Group net financial expenses decreased to -€344 million compared to -€446 million in 2018.
Consolidated net income reached €3,584 million, an increase of €289 million compared to 2018. Net income, Group share, reached €3,201 million, up €374 million compared to 2018.
Banque PSA Finance reported adjusted operating income of €1,012 million[5], up 7.8%.
Faurecia adjusted operating income was €1,227 million, down 2.9%.
The free cash flow of manufacturing and sales companies was €2,745 million of which €3,265 million for the Automotive division.
Total inventory, including independent dealers and importers[6], stood at 606,000 vehicles at 31 December 2019, down 74,000 vehicles compared to 31 December 2018.
Banque PSA Finance reported adjusted operating income of €1,012 million[5], up 7.8%.
Faurecia adjusted operating income was €1,227 million, down 2.9%.
The free cash flow of manufacturing and sales companies was €2,745 million of which €3,265 million for the Automotive division.
Total inventory, including independent dealers and importers[6], stood at 606,000 vehicles at 31 December 2019, down 74,000 vehicles compared to 31 December 2018.
The net financial position of manufacturing and sales companies was €7,914 million at 31 December 2019 after IFRS 16 effect and Clarion acquisition by Faurecia and including DFG share repurchase debt.
A dividend of €1.23 per share[7] will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 21 May 2020, and the payment date on 25 May 2020.
Market outlook: in 2020, the Group anticipates a decrease by 3% of the automotive market in Europe and by 2% in Russia as well as a stable automotive market in Latin America.
Operational outlook:
Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin[8] on average for the period 2019-2021.
Link to the presentation of 2019.
Financial Calendar
21 April 2020: First-quarter 2020 revenue
14 May 2020: Shareholders’ Meeting
28 July 2020: 2020 interim results
28 October 2020: Third-quarter 2020 revenue
Groupe PSA consolidated financial statements for the year ended 31 December 2019 were approved by the Managing Board on 25 February 2020 and reviewed by the Supervisory Board on 25 February 2020. The audit procedures on the consolidated accounts were carried out by the Group's Statutory Auditors. Their certification report is being issued. The report on the annual results and the presentation of the 2019 results can be consulted on the Group’s website (www.groupe-psa.com), in the “Finance” section.
Appendix
Consolidated Income Statement
(en millions d’euros)
2018
2019
Revenue
74,027
74,731
Adjusted operating Income
5,689
6,324
Operating income
4,400
4,668
Net financial income (expense)
(446)
(344)
Income taxes
(615)
(716)
Share in net earnings of companies at equity
(44)
(24)
Consolidated profit
3,295
3,584
Attributable to owners of the parent
2,827
3,201
attributable to non-controlling interests
468
383
Basic earnings per €1 par value share attributable to equity holders of the parent
3.16
3.58
Diluted earnings per €1 par value share – attributable to equity holders of the parent
3.01
3.40
Assets
(in million euros)
31 December 2018
31 December 2019
Total non-current assets
33,806
38,439
Total current assets
28,146
31,327
TOTAL ASSETS
61,952
69,766
Equity and liabilities
(in million euros)
31 December 2018
31 December 2019
Total equity
19,594
21,801
Total non-current liabilities
12,356
16,265
Total current liabilities
30,002
31,700
TOTAL EQUITY & LIABILITIES
61,952
69,766
in million euros)
2018
2019
Consolidated profit from continuing operations
3,295
3,584
Funds from operations
6,734
7,573
Net cash from (used in) operating activities of continuing operations
8,395
8,705
Net cash from (used in) investing activities of continuing operations
(4,739)
(5,972)
Net cash from (used in) financing activities of continuing operations
(7)
(309)
Effect of changes in exchange rates
(44)
(21)
Increase (decrease) in cash from continuing operations and from operations held for sale or to be continued in partnership
3,605
2,403
Net cash and cash equivalents at beginning of period
11,797
15,402
Net cash and cash equivalents of continuing operations at end of period
15,402
17,805
[1] Adjusted operating income related to revenue
[2] Automotive Division (PCDOV)
[3] Dividend per share calculated on the basis of the total number of outstanding shares of the company minus the treasury shares of the company as of 25 February 2020. The actual dividend per share will depend on the number of treasury shares held at the ex-dividend date and any shares issued or cancelled prior to this date.
[4] Adjusted operating income (loss) excludes from Operating income certain adjustments comprising Restructuring costs, Impairment of CGU’s and Other operating income (expense) considered rare or discrete events and are infrequent in nature.
[5] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.
[6] Including Peugeot importers outside Europe
[7] Dividend per share calculated on the basis of the total number of outstanding shares of the company minus the treasury shares of the company as of 25 February 2020. The actual dividend per share will depend on the number of treasury shares held at the ex-dividend date and any shares issued or cancelled prior to this date.
[8] Automotive Division (PCDOV) adjusted operating income related to revenue