Volume growth thanks to Middle East Africa, ahead of product offensive
• 2016 Group cumulated revenue up 1.3% at €39.2 billion at constant exchange rate
• Continued improvement of pricing power in Europe
• Start of the product offensive: launch of Peugeot Expert and Citroën Jumpy in June, Peugeot 3008 in October and Citroën C3 in November
• Faster international expansion: partnerships signed in Iran with Iran Khodro for Peugeot and Saipa for Citroën
• Enlarge customer base: online multi-brand used vehicle sales and rollout of mobility services
Group Q3 2016 revenue totalled €11,404 million, compared with €12,016 million in Q3 2015. In the first nine months, Group revenue reached €39,183 million, compared with €40,052 million in 2015, up 1.3% at constant exchange rates.
Automotive division revenue was €7,542 million, compared with €8,052 million in Q3 2015. Negative exchange rate effects (-4.7%) were partially offset by the positive price impact (+1.8%), reflecting the policy of improving the price positioning of the three brands, Peugeot, Citroën and DS.
Consolidated worldwide sales were up 10.6%2. Ahead of major product launches in the fourth quarter, which are not yet visible in registrations, sales volumes declined in Europe (-4.3%) and China (-16.5%). In Latin America, they were up 22.6%. In Africa Middle East, volumes increased, driven by sales of vehicles manufactured in Iran under Peugeot licence .
As of end-September 2016, inventories totalled 400,000 vehicles (382,000 in the same period last year).
Jean-Baptiste de Chatillon, Chief Financial Officer of the PSA Group and member of the Managing Board, said: “The levers of the Back in the Race plan, especially pricing power and cost reduction, make us confident that we will achieve the objectives of the Push to Pass plan, despite a more challenging external environment, particularly in respect of exchange rates.”
For 2016, the Group expects the automotive market to grow by about 6% in Europe and 15% in China, and to shrink by around 6% in Latin America and 15% in Russia.
The Push to Pass plan, has set the following targets:
- Reach an average 4% automotive recurring operating margin in 2016-2018, and target 6% by 2021;
- Deliver 10% Group revenue growth by 20184 vs 2015, and target additional 15% by 2021 .
Financial Calendar – 23 February 2017: 2016 Annual Results
Appendix on the PDF Release