Škoda Auto reports profit increase while mother Volkswagen falls behind

Published: 07.11.2023 Related countries:  Ireland Ireland , United Kingdom United Kingdom

The car manufacturer announces a 47 % profit increase, as the VW mother’s profit decreases due to commodity costs.

In a press release at the end of last month, Czech car manufacturer Škoda has announced an operating profit of 1.26 billion EUR (1.1 billion GBP) in the first three quarters of the year, an increase of 47 % in comparison to the same period last year. This news indicates a positive bounce-back as the company lost about 700 million EUR (610 million GBP) last year due to terminating trading with Russia.

Despite unfavourable exchange rate movements and rising costs, the company has succeeded, which Škoda attributes to growing value added and a new more profitable pricing policy. At the same time, the mother company Volkswagen reports a 7 % decrease in profit, mostly due to rising commodity prices which have led to non-monetary loss.

Škoda is emerging from the dip of last year as the margin leader of the VW group, with hopes for positive results at the end of the year as well. With new models emerging this year, Škoda hopes to keep or even improve its position, which is strong across many markets. United Kingdom, as the company’s #4 in the last year, will no doubt be one of its priorities.

Prepared by the Czech Trade United Kingdom & Ireland team
Source: Hospodářské noviny