Audi reports financial results for first half of 2020

In the first half of this year, deliveries, revenue and operating profit were below the previous year's figures. As expected, the consequences of the COVID-19 pandemic are presenting major challenges for the entire economy and for Audi as well.

The second quarter in particular featured an orderly restart of production and a significant recovery in customer demand. A positive trend is evident in car deliveries for Audi at -22%, which is significantly better positioned than the market as a whole with -28%.

A worldwide decline in demand and interruptions in the supply chain led to global production suspensions and short-time working at Audi's German plants until end-June. In the first half of the year, the Audi Group's revenue fell to $33.2 billion from $46.6 billion in 2019 as a result of lower unit sales.

The good revenue development of the all-electric Audi e-tron had a positive effect. By the middle of the year, 16,898 Audi e-tron cars had been delivered to customers, a huge leap from 9,444 deliveries in the previous year.

Despite a difficult market environment, the Audi Group's net cash flow and net liquidity remained strong. The net cash flow amounted to $3.16 billion, especially against the background of the sales of a company compared to $3.65 billion last year. Net liquidity remains at the high level of $32.2 billion, only a slight decrease from the end of December 2019 at $35.2 billion.

In the context of the COVID-19 pandemic, Audi has set up a liquidity task force to systematically reduce cash outflows and help to secure Audi's long-term ability to act.

All non-product-related costs and investments are systematically scrutinised. Thanks to its strengthened investment discipline, the Audi Group has achieved a ratio of capital expenditure to revenue of 2.4%, down from 3.0% the year before.

Arno Antlitz, Member of the Board of Management of Audi AG for Finance and Legal Affairs says, "Our strategic decisions define the agenda for the coming years. At the heart of this is the electrification and digitalisation of our model range."

One example is Artemis. This new unit will accelerate the development of additional electric models. In addition, Markus Duesmann, Chairman of the Board of Management of Audi AG, is taking charge of software in the Volkswagen Group Board of Management as part of his responsibility for research and development, and will therefore manage the new Car.Software-Organization unit within the Volkswagen Group.