Volvo Cars reports major Q1 sales growth
Written by: Fuel Card Services, Last updated:11th August 2020
Volvo Cars has announced a significant uplift in vehicle sales for the first quarter of 2019.
The company recorded a 9.4 per cent increase in sales during the first three months of the year to 161,320 cars sold. This was supported by a growth in net revenue of 10.7 per cent to 62,910 million Swedish krona (£5.1 million).
Sales up but profits down
Despite this impressive sales performance, the manufacturer witnessed a decline in both net income (down 21.6 per cent) and operating profits (down 19.3 per cent).
As a result, the company saw its earnings before interest and tax margin fall from 6.4 per cent in Q1 2018 to 4.6 per cent at present.
Responding to the data, Volvo Cars CEO Hakan Samuelsson commented: “The sales growth in the first quarter proves the appeal of Volvo Cars’ product portfolio. We grew in all three regions and revenue continued to rise faster than volumes.
“Compared with last year, profitability was affected by higher tariffs and increased price pressure in many markets.”
Highlighting the manufacturer’s outlook for 2019, the company reported it expects to see growth in both sales and revenue, although market conditions are likely to place continued pressure on margins.
Ellie Baker, brand manager at Fuel Card Services, comments: “This is positive news for Volvo and fleet operators keen to see the strength of this manufacturer improving. The high sales volume and growth in revenue bodes extremely well for the future of the business and the continued delivery of high-quality vehicles by the firm.”back