Groupe PSA remains profitable in H1 2020 despite Covid

• €25.1 billion Group revenue
• 3.7% Automotive division [1] adjusted operating margin [2] at €731 million
• Net result group share at €595 million
• €153 million Automotive positive free cash flow excluding working capital
• Strong financial security at €23.2 billion

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “This H1 result proves the Group’s resilience, as a reward of 6 consecutive years of intense work to increase our agility and lower our breakeven point. The Group is also weathering this crisis thanks to the commitment of the teams, focused to deliver a clean, safe and affordable mobility for our customers. We are determined to achieve solid rebound in the second half of the year, while finalizing the birth of Stellantis before the end of Q1 2021.”

Group revenue amounted to €25,120 million in H1 2020, down by 34.5% compared to H1 2019. Automotive division revenue amounted to €19,595 million down by 35.5% versus H1 2019, mainly driven by the negative impact of volumes and country mix (-40.5%), the decrease of sales to partners (-0.5%) and the impact of exchange rates (-0,6%) ; conversely, revenues benefited from the positive effect of product mix (+3.4%) and price (+0.4%), as well as others (+2.3%).

Group adjusted operating income [3] amounted to €517 million, down 84.5% with Automotive adjusted operating income down 72.5% at €731 million. This 3.7% profitability level was reached despite the sharp decline of automotive markets and thanks to a positive product mix and cost reductions.

Group adjusted operating margin reached 2.1%, down 6.6 pts versus H1 2019.

Other operating income and expenses amounted to -€35 million, compared to -€847 million in H1 2019.

Group net financial income and expenses improved to €52 million compared to -€166 million in H1 2019.

Consolidated net income reached €376 million, a decrease of €1,672 million compared to H1 2019. Net income, Group share, reached €595 million, down €1,237 million compared to H1 2019.

Banque PSA Finance reported adjusted operating income of €463 million [4], down 9.7%.

Faurecia adjusted operating income was a loss at -€159 million.

Free cash flow of manufacturing and sales companies was -€4,704 million of which -€3,601 million for the Automotive division.

Automotive free cash flow was positive at €153 million excluding working capital.

Total inventory, including independent dealers and importers [5], stood at 505,000 vehicles at 30 June 2020, down 24% compared to 30 June 2019.

Net financial position of manufacturing and sales companies was €2,886 million at 30 June 2020 of which €6,957 million for the Automotive division.

Market outlook: in 2020, the Group anticipates a decrease by 25% of the automotive market in Europe, by 30% in Russia and Latin America, and by 10% in China. 

Operational outlook: Groupe PSA has set the target to deliver over 4.5% Automotive adjusted operating margin [6] on average for the period 2019-2021.

[1] Automotive Division (PCDOV)

[2] Adjusted operating income related to revenue

[3] Adjusted operating income (loss) excludes from Operating income certain adjustments comprising Restructuring costs, Impairment of CGU’s and Other operating income (expense) considered rare or discrete events and are infrequent in nature.

[4] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

[5] Including Peugeot importers outside Europe

[6] Automotive Division (PCDOV) adjusted operating income related to revenue