PSA earned €25.1 bln in 1st half, auto accounted for 78%

On July 28, PSA Group announced its financial report data for the first half of the year. It is reported that the PSA Group achieved operating income of 25.12 billion euros in the first half of the year, of which the operating income of the group's automotive business was 19.595 billion euros, accounting for 78%, involving the five major brands of Peugeot, Citroen, DS, Opel and Vauxhall.

Carlos Tavares, Chairman of the PSA Group Management Committee, said: “The Group’s financial performance in the first half of this year demonstrates its strong operating resilience. It also shows our unremitting efforts to improve the Group’s operational agility and reduce the break-even point over the past six years. Efforts have paid off. PSA Group has withstood the major test of the epidemic crisis, which is mainly due to the team’s professionalism and the team’s continuous provision of clean, safe, and cost-effective travel solutions for customers. We are determined in the second half of this year At the same time, we will continue to promote the establishment of the STELLANTIS Group in the first quarter of 2021."

Affected by COVID-19, PSA Group’s revenue in the first half of 2020 fell by 34.5% year-on-year, and its automotive business revenue fell by 35.5% year-on-year. According to PSA, the main negative impact comes from sales volume and globalization (-40.5%), the decline in sales to partners (-0.5%), and the adverse impact of exchange rates (-0.6%). In contrast, factors that have a positive impact on revenue include product mix (+3.4%), pricing (+0.4%) and others (+2.3%).

In terms of profit, the adjusted operating profit of PSA Group in the first half of the year was 517 million euros, a decrease of 84.5%, and the operating profit margin was 2.1%. The adjusted operating profit of the automotive business was 731 million euros, a decline of 72.5%, and the profit margin was 3.7%.

At present, the global automotive market is still full of uncertainty. PSA Group expects that the European automotive market will decline by 25% in 2020, the Russian market and the Latin American market will each decline by 30%, and the Chinese market will decline by 10%.

PSA Group has set operating targets to increase the adjusted average operating profit margin of the automotive business to over 4.5% during the period 2019-2021. According to the plan, starting from 2025, PSA Group will electrify all its models. Among them, 50% of the models will be electrified by the end of 2021. In the second half of the year, PSA Group will successively launch Peugeot 4008 PHEV, Citroen C5 Aircross PHEV, Peugeot 508L PHEV and other EV models in China.