Q2 2024 Volvo Car AB Earnings Call Transcript
Key Points
- Volvo Car AB (VLVOF) reported record core profitability in Q2 2024, with core EBIT margins reaching an all-time high of 8.1%.
- The company achieved a 15% increase in retail sales, outperforming many competitors.
- Gross margins for battery electric vehicles (BEVs) reached a new high of 20%, up from 3% the previous year.
- Volvo's EX30 model is among the top three best-selling EVs in Europe, indicating strong market acceptance.
- The company improved its cash flow by SEK12 billion quarter-over-quarter, showcasing strong financial management.
- Volvo Car AB (VLVOF) faces challenges from tariffs imposed by the EU and the US, which are expected to impact the second half of 2024.
- The company anticipates a more challenging macroeconomic environment, which could affect future growth.
- There are uncertainties regarding the impact of tariffs on the EX30, which could affect pricing and demand.
- Volvo plans to stop disclosing individual drivetrain margins, including EVs, due to competitive sensitivity, which may reduce transparency for investors.
- The company is experiencing high inventory levels, which it plans to reduce in the second half of the year to achieve neutral free cash flow.
Good morning, and a warm welcome to the presentation of Volvo Car's second quarter financial results coming to you from our headquarters in Gothenburg. My name is Ron. As always, I'm joined this morning by our President and Chief Executive, Jim Rowan; and our Chief Financial Officer, Johan Ekdahl. At the top of this earnings call, Jim and Johan will walk through our performance during the second quarter and thereafter, we'll throw it open for a question and answer on. I'll come back with more information on how you can participate in the Q&A round. But for now, I'll leave the floor to Jim. Jim?
Thanks, Ron. Good morning, everyone, and welcome, and thanks for joining us for our second quarter earnings call. The second quarter for 2024 has been strong with record core profitability. But before we delve into the numbers, here's what we achieved and say the quarter.
We delivered very strong double-digit retail sales
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