Negative impact on vehicle deliveries and earnings in the first half of the year due to measures to contain the COVID-19 pandemic and related economic effects. SKODA AUTO achieves positive operating profit of 228 million euros despite plant shutdowns and disruption to sales channels.
The measures to contain the coronavirus pandemic also had a negative impact on SKODA AUTO's vehicle deliveries and financial indicators in the first half of 2020. The SKODA AUTO Group's* sales revenue was EUR7.55 billion in the first six months, but the operating profit still amounted to EUR228 million - despite the 39-day shutdown of the Czech plants and the disruption to the sales channels, particularly in April. Against this background, the return on sales stood at 3.0%. SKODA AUTO delivered a total of 426,700 vehicles to customers from January to June. Since June, the Czech automobile manufacturer has been experiencing the positive effects of its restart programmes, which have been adapted to each market, and incoming orders have recently exceeded last year's level. Provided the COVID-19 situation does not deteriorate significantly again, SKODA AUTO expects the conditions on the world markets to stabilise gradually over the coming weeks and months. Investments in tangible assets remained at a high level of 261 million euros over the past six months; SKODA AUTO continues to invest consistently in the company's future and development.
SKODA AUTO CEO Bernhard Maier explains: 'SKODA AUTO has performed well in recent years and has a solid financial foundation. In response to the current exceptional situation caused by the COVID-19 pandemic, we immediately implemented comprehensive measures to stabilise sales, sales revenue and operating profit. These measures are already proving effective and we will consistently continue along this path in the months ahead. I am convinced, that SKODA will emerge from this situation even stronger.'
Klaus-Dieter Schurmann, SKODA AUTO Board Member for Finance and IT, adds: 'Our goal is to continuously improve on the current level through to the end of the year. To achieve this, we are consistently pursuing our ongoing performance programme. The same applies to our recently introduced short-term special measures focusing on overheads and material costs as well as optimising expenses and current assets. '
Despite the 39-day shutdown of its Czech plants and the economic impact of the measures to contain the COVID 19 pandemic, SKODA AUTO posted an operating profit of 228 million euros. At the end of April, the car manufacturer gradually ramped up vehicle production again as planned, observing the necessary health protection measures. As the car dealerships in the European markets have reopened, customer demand for vehicles has noticeably increased. At the same time, the sales channels have been largely restored and are functioning smoothly.
Alain Favey, SKODA AUTO Board Member for Sales and Marketing, explains: 'Although our worldwide deliveries to customers decreased in the first six months of the year due to the exceptional starting position, the outlook is positive: in June we were able to make significant gains compared to the previous months. We are particularly well positioned with our attractive, modern model portfolio. In order to support the positive developments on the international markets, SKODA has introduced comprehensive restart programmes for its trade partners alongside the government support measures, which we warmly welcome. Against this background, we expect a recovery in the third quarter and anticipate a return to the previous year's level in the fourth quarter.'
The company remains committed to its medium and long-term goals and is consistently rolling out the largest model campaign in its history. The manufacturer plans to launch 30 new models, derivatives, product upgrades or variants between 2019 and the end of 2022. Also, with the all-electric ENYAQ iV, it is taking a major step forward in implementing its electric mobility strategy - the SUV is SKODA's first electric vehicle to be developed as such from the outset. The most important SKODA model in 2020 will be presented to the public for the first time in September.
SKODA AUTO Group* - Key figures in the first half of the year, January to June 2020/2019**:
Deliveries to customers
2020 = 426,700 cars
2019 = 620,900 cars
2020/2019 change = -31.3 %
Deliveries to customers exl. China
2020 = 349,300 cars
2019 = 495,000 cars
2020/2019 change = -29.4 %
Production***
2020 = 357,000 cars
2019 = 528,700 cars
2020/2019 change = -32.5 %
Sales****
2020 = 371,900 cars
2019 = 559,900 cars
2020/2019 change -33.6 %
Sales revenue
2020 = 7,546 mil. eur
2019 = 10,154 mil. eur
2020/2019 change = -25.7 %
Operating profit
2020 = 228 mil. eur
2019 = 824 mil. eur
2020/2019 change -72.3 %
Return on Sales
2020 = 3.0 %
2019 = 8.1 %
Investments in tangible assets
2020 = 261 mil. eur
2019 = 369 mil. eur
2020/2019 change = -29.3 %
Net cash flow
2020 = -25 mil. eur
2019 = 1,025 mil. eur
2020/2019 change = -102.4 %
SKODA AUTO Group comprises SKODA AUTO a.s, SKODA AUTO Slovensko s.r.o., SKODA AUTO Deutschland GmbH, SKODA AUTO Volkswagen India Private Ltd. and a share in the company OOO VOLKSWAGEN Group RUS.
** Percentage deviations are calculated from non-rounded figures.
*** Comprises production in the SKODA AUTO Group, excluding production at partner assembly plants in China, Slovakia, Russia and Germany, but including other Group brands such as SEAT, VW and AUDI; vehicle production excluding part/complete kits.
**** Comprises SKODA AUTO Group sales to distribution companies, including other Group brands such as SEAT, VW, AUDI, PORSCHE and LAMBORGHINI; vehicle sales excluding part/complete kits
First half of 2020: SKODA delivers 426,700 vehicles worldwide
From January to June, the Czech automaker delivered 426,700 vehicles to customers around the world (first half of 2019: 620,900 vehicles; -31.3%).
In Western Europe, SKODA recorded 181,700 deliveries from January to June (first half of 2019: 275,700 vehicles; -34.1%). In Germany, the brand's second-largest single market worldwide, the manufacturer delivered 63,600 vehicles in the first six months of the year (first half of 2019: 99,000 vehicles; -35.8%).
In Central Europe, deliveries in the first half of the year fell to 84,400 units (first half of 2019: 110,400 vehicles; -23.5%). In its domestic market, the Czech Republic, the car manufacturer recorded 39,400 deliveries in this period (first half of 2019: 48,000; -17.9%).
In Eastern Europe excluding Russia, deliveries in the first half of the year fell to 16,700 vehicles (first half of 2019: 24,500 vehicles; -32.0%).
In Russia, the manufacturer delivered 34,200 vehicles to customers between January and June (first half of 2019: 39,800 vehicles; -14.1%).
In China, the company's largest single market worldwide, SKODA delivered 77,400 vehicles in the first six months of the year (first half of 2019: 125,900 vehicles; -38.5%).
In India, the carmaker recorded 3,700 deliveries in the first half of the year (first half of 2019: 7,200 vehicles; -48.4%).
In the first six months, SKODA achieved significant growth in Turkey: 7,600 deliveries to customers corresponds to an increase of 45.8% compared to the same period last year (first half of 2019: 5,200 vehicles).
SKODA brand deliveries to customers in the first half of 2020 (in units, rounded off, listed by model; +/- in per cent compared to the first half of 2019):
SKODA OCTAVIA (110,700; -40.4%)
SKODA KODIAQ (60,700; -21.9%)
SKODA KAROQ (56,300; -23.7%) SKODA KAMIQ (52,500; +144.9%)
SKODA FABIA (48,100; -50.6%) SKODA SUPERB (37,800; -33.4%) SKODA RAPID (28,100; -63.9%)
SKODA SCALA (27,300; +270.6%)
SKODA CITIGO (only sold in Europe: 5,200; -)
VOLKSWAGEN AG 
