VW-Dachgesellschaft struggles with weakness of participations - Porsche SE’s Profit Plummets 50% as Volkswagen and China Woes Bite
Porsche SE, the holding company controlled by the Porsche and Piëch families, has reported a significant decline in profit for the first nine months of the year. The company's net profit after taxes halved to €1.24 billion, driven by underperformance at key holdings like Volkswagen Group and Porsche AG.
The company's net debt stood at €5.02 billion at the end of September, slightly down from €5.16 billion at the start of the year. Porsche SE expects this figure to remain within a range of €4.9 billion to €5.4 billion by the end of the year.
Porsche SE's profit for the period, adjusted for one-time effects, was €1.59 billion, a substantial drop from €2.48 billion in the same period last year. The decline was largely due to the underperformance of key holdings, including the Volkswagen Group which faced steep costs this year due to a strategic pivot towards electric vehicles and weak sales in China.
To diversify revenue streams, Porsche SE has expanded into sectors beyond automotive. The company, under the control of the Porsche and Piëch families, has acquired companies in consulting, financial services, logistics, and lifestyle products. These acquisitions include Porsche Consulting GmbH, Porsche Financial Services GmbH, Porsche Logistik GmbH, and Porsche Lizenz- und Handelsgesellschaft mbH. In 2022, the families used the holding company to secure a 25 percent plus one ordinary share in Porsche AG’s IPO, financed with billions in new debt.
Porsche SE's net profit decline highlights the challenges faced by its key holdings, particularly the Volkswagen Group. Despite this, the company plans to expand into defense and security industries to further diversify its revenue streams. The holding company's net debt is expected to remain stable within a specified range by the end of the year.
