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Although last quarter’s revenues weren’t stellar due to rising commodity prices and a shortage of semiconductors, Volvo recorded its highest figures in terms of annual turnover and profit margins.
Similar to other premium manufacturers, the Swedish brand benefited from the ability to focus on its most profitable range and achieved a operating profitability of 7.2%, an increase of four percentage points compared to the data of 2020 and two compared to those of 2019.
The turnover for the entire year amounted to 26,700 million euros —another historic milestone for the company— translated into a net profit of 1,920 million, 82% more than a year ago.
Looking ahead to 2022, its CFO, Björn Annwall, estimates that its sales will be even higher, even if the effects of the chip crisis linger.
“We are seeing a gradual increase, but it is slow. It will be a limiting factor in the first half of the year, and we will see how it evolves from the second”, he concluded. In the last quarter of 2021, when the effects of this shortage were notable, profit margins stood at 4.2%.
Sales reached 698,000 units, remaining 100,000 below the 800,000 that had been set as a goal for 2020 – without being able to foresee the effects of the health and component crises. Looking ahead to this year, Annwall said that they have “the demand and orders to reach those levels”but it remains to be seen whether production will allow them to satisfy them.
Since its listing on Nasdaq in Stockholm last October, Volvo shares have risen 18% to close at SEK 216 on Friday 11 February. For this year, its high-performance electric subsidiary, Polestar, is expected to begin trading on the New York Stock Exchange through a ‘blank check’ company (SPAC).