Carlos Tavares, Chairman of Groupe PSA Managing Board said: ‘Peugeot Citroën DS has made significant progress for the 5th year in a row and is closing the first phase of the Push to Pass strategic plan with outstanding results. This demonstrates the ability of our Group to deliver a profitable and recurring growth. Opel Vauxhall has laid the foundations for a sustainable future with PACE! Plan and are eager to unleash further potential. We are now entering in the second phase of the Push to Pass plan with confidence in a context of even stronger headwinds. No doubt that our agile, customer focused and socially responsible approach will make the difference.’
A dividend of €0.78 per share will be submitted for approval at the next Shareholders’ Meeting.
Group revenue amounted to €74,027 million in 2018, up 18.9% compared to 2017 and up 23.3%[6] at constant 2015 exchange rates and perimeter. PCD Automotive division revenue amounted to €43,027 million up 5.6% versus 2017, mainly driven by product mix (+4.0%), as well as volume and country mix (+1.2%), sales to partners (+1.7%) and price (+1.3%), offsetting the negative impact of exchange rates (-2.7%). OV Automotive division revenue amounted to €18,306 million in 2018 compared to €7,238 million for the last 5 months of 20171.
Group recurring operating income amounted to €5,689 million, up 43% with PCD Automotive recurring operating income up 21.9% at €3,617 million. This 8.4% record profitability level was reached despite strong exchange rate headwinds and raw material cost increases, thanks to positive product mix and price conditions as well as further cost reductions. OV Automotive recurring operating income amounted to a €859 million profit in 2018 compared to a €179 million loss for the last 5 months of 20171.
Group recurring operating margin stood at 7.7%, up 1.3 pt versus 2017.
Group non-recurring operating income and expenses had a negative impact of -€1,289 million, compared to -€904 million in 2017.
Group net financial expenses increased to €446 million compared to €238 million in 2017.
Consolidated net income reached €3,295 million, an increase of €948 million compared to 2017. Net income, Group share, reached €2,827 million compared to €1,924 million in 2017.
Banque PSA Finance reported recurring operating income of €939 million, up 48.6%.
Faurecia recurring operating income was €1,263 million, up 9.3%.
The free cash flow of manufacturing and sales companies was €3,501 million of which €1,357 million for OV.
Total PCD inventory, including independent dealers and importers, stood at 485,000 vehicles at 31 December 2018, an increase of 40,000 units from end 2017. Total OV inventory, including independent dealers, stood at 195,000 vehicles at 31 December 2018, a decrease of 32,000 units from end 2017.
The net financial position of manufacturing and sales companies was
€9,098 million at 31 December 2018, compared to €6,194 million at 31 December 2017.
A dividend of €0.78 per share will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 2 May 2019, and the payment date on 6 May 2019.
Market outlook: in 2019, the Group anticipates a stable automotive market in Europe, a decrease by 1% of the market in Latin America and by 3% in China and growth of 5% in Russia.
New operational outlook
Having overpassed the initial targets of the Push to Pass plan for the period 2016-2018, Groupe PSA sets the following new target for the period 2019-2021 (including Opel Vauxhall):
Deliver over 4.5% Automotive recurring operating margin on average in 2019-2021.
Groupe PSA announces also a new dividend policy for 2019-2021 with a pay out ratio increased to 28% from fiscal year 2019.
SOURCE: PSA
