Skoda delivered 12.6% fewer vehicles in 2021 but still achieved a return on sales of 6.1% as production was heavily hit by supply bottlenecks and semiconductor shortages.
The Czech firm delivered 878,200 cars and achieved €17.7 billion (£14.7bn) in revenue - a rise of 3.9% - and a significant increase in operating profit, up 43.2% to €1.08bn (£899m). Cashflow also increased by 160% to €554m (£453m).
Despite Christian Schenk, Skoda board member for finance and IT, suggesting the first two quarters of 2021 moved “almost seamlessly”, Skoda suffered a significant drop in production from quarter three onwards, put down to parts-supply issues and production stops.
“2021 was an extremely challenging fiscal year. We dealt with the situation calmly and in keeping with our ‘simply clever’ philosophy,” Shenck said.
“We were able to increase our operating profit compared to the previous year to over €1bn, thanks to a united team performance. Revenue also developed positively despite low sales figures resulting from production constraints.”
Skoda expects the semiconductor shortages to ease throughout 2022 but suggested that the war in Ukraine will continue to impact production.
“The war in Ukraine will have, besides severe humanitarian and political consequences, additional heavy impacts on our business. It's still too early to predict all the effects on our supply chain, the material costs and general economic consequences,” said CEO Thomas Schäfer.
Like sibling brand Volkswagen, Skoda has been hit heavily by shortages of Ukrainian-made wiring harnesses. It halted production of the Skoda Enyaq iV at the start of the month but has said that it will continue to use the same supplier.
Meanwhile, the Skoda Octavia was the company's best-selling car. It sold 200,800, followed by the Skoda Kamiq with 120,700 and the Skoda Karoq with 119,200. SUVs accounted for 60% of Skoda’s overall sales in 2021.
Schäfer revealed that Skoda has three electric cars in development. He didn't reveal any details about them but hinted that an electric Octavia is being worked on.
Skoda is working with Volkswagen to develop the successor to the wildly successful Skoda Superb and Volkswagen Passat duo.
Skoda confirmed that hydrogen isn't on the agenda, saying that there's “nothing more reasonable than battery-electric driving”.
It has a goal of increasing its share of EVs to 50-70% – a figure expected to be bolstered by the Enyaq iV.
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So those higher new car prices are paying off with an increased profit, despite reduced sales volumes. Who would have thought it?!