Free Trial

Volkswagen: FY23 Follow Up Reaction

CONSUMER CYCLICALS

Equity is one of the worst performers in our issuer universe, down 3.5% on an otherwise strong day.


Some points from the analyst presentation:

  • Expect adj. operating margin of 7-7.5%, consensus is 7%.
  • Expect net debt to remain in €39-41bn range vs €40.3bn at FY23.
  • Guiding for cash flow of €4.5-6.5bn vs €10.7bn in 2023; due to €6bn of investment in battery production. Lower than analyst estimates at €6.6bn.
  • Sees China operating profit of €1.5-2bn vs €2.6bn in 2023, a second consecutive decline. Highlighting highly competitive EV market there and expect to give up market share. Equity appears to be disappointed on these last 2 points.
  • Cash still 1-4 tighter on the day.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.