The all-electric Volvo EX30 is on display during the Everything Electric London 2024 exhibition at ExCel on March 28, 2024 in London, England.
John Cable | Getty Images News | Getty Images
Swedish automaker Volvo Cars on Wednesday reported a slight rise in first-quarter core operating profit driven by strong retail sales.
Underlying operating profit in the first quarter was SEK 6.8 billion ($629 million), an increase of 8% year-on-year. This figure does not include joint ventures and associates.
Revenue was $93.9 billion, down 2% from the first quarter of 2023.
The company said retail sales rose 12% year-on-year to 182,687 vehicles, after a new record for monthly sales in March.
The company said that the results showed that it is “on the right track” towards its goal of growing annual sales volume by at least 15%.
“We're off to a strong start to the year, with first-quarter results laying a solid foundation for next year,” CEO Jim Rowan said in a statement.
The growth included a modest rise in electric vehicle sales, with the company doubling its size in the category. Gross profit margins for electric vehicles rose to 16% in the first quarter from 7% a year earlier.
“Our focus is not only on providing the best electric vehicles with the latest technology, but on doing so with strong profit margins,” Rawan said.
Looking ahead, Volvo Cars said it expects a further increase in retail sales for 2024 compared to the previous year, with the share of fully electric vehicles expected to increase “significantly”.
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