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Groupe PSA: Sharp growth and record profitability

  • 40.1% Group revenue growth at €38.6 billion[1]
  • 8.5% PCD[2] Automotive division recurring operating margin[3]
  • 5.0% OV[4] Automotive division recurring operating margin
  • 7.8% Group recurring operating margin, at €3.017 billion
  • €3.191 billion Group operational free cash flow[5] of which €1.157 billion for OV

 Carlos Tavares, Chairman of Groupe PSA Managing Board said: « The Group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds. Opel Vauxhall teams start to deliver good results to build the New Opel Vauxhall and are eager to unleash further potential. Our agility and strong focus on execution remain a strong asset to reach our targets. »

Group revenue amounted to €38,595 million in the first half of 2018, up 40.1% compared to 2017 H1 and up 22.9%[sup][6][/sup] at constant 2015 exchange rates and perimeter. PCD Automotive division revenue amounted to €22,149 million up 11.4% versus 2017 H1, mainly driven by volume and country mix (+5.4%), as well as product mix (+4.7%), and sales to partners (+3.2%), offsetting the negative impact of exchange rates (-2.9%). OV Automotive division revenueamounted to €9,946 million in 2018 H1.

Group recurring operating income amounted to €3,017 million, up 48.1% with PCD Automotive recurring operating income up 29.9% at €1,873 million. This 8.5% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to an increase of sales, a positive product mix and further cost reductions. OV Automotive recurring operating income amounted to a €502 million profit in 2018 H1.

Group recurring operating margin stood at 7.8%, up 0.4 pt versus 2017 H1.

Group non-recurring operating income and expenses amounted to -€750 million, compared to -€112 million in 2017 H1.

Group net financial expenses increased to -€218 million compared to -€121 million in 2017 H1.

Consolidated net income reached €1,713 million, an increase of €242 million compared to 2017 H1. Net income, Group share, reached €1,481 million, up €226 million compared to 2017 H1.

Banque PSA Finance reported recurring operating income of €510 million[7], up 63.5%.

Faurecia recurring operating income was €642 million, up 10.1%.

The free cash flow of manufacturing and sales companies was €2,577 million and the operational free cash flow was €3,191 million of which €1,157 million for OV.

Total PCD inventory, including independent dealers, stood at 412,000 vehicles at 30 June 2018, an increase of 38,000 units from end June 2017. Total OV inventory, including independent dealers, stood at 216,000 vehicles at 30 June 2018.

The net financial position of manufacturing and sales companies was
€8,257 million at 30 June 2018, up €2,063 million compared to 31 December 2017.

Market outlook: in 2018, the Group anticipates a stable automotive market in Europe, and growth of 4% in Latin America, 10% in Russia and 2% in China.

Operational outlook reminder:

The Push to Pass plan sets the following targets for Groupe PSA (excluding Opel Vauxhall):

  • Deliver over 4.5% Automotive recurring operating margin[8] on average in 2016-2018, and target over 6% by 2021;
  • Deliver 10% Group revenue growth by 2018[9] vs 2015, and target additional 15% by 20219.

Link to the presentation of H1 2018.

Financial Calendar

24 October 2018: Third-quarter 2018 revenue

Groupe PSA consolidated financial statements at 30 June 2018 were approved by the Managing Board on 18 July 2018 and reviewed by the Supervisory Board on 23 July 2018. The Group’s Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

The interim results report and interim financial results presentation for 2018 are available at, in the “Analysts and Investors” section.


[1] Group revenue includes OV since August, 1st 2017

[2] PCD (Peugeot, Citroën, DS)

[3] Recurring operating income related to revenue

[4] OV (Opel, Vauxhall)

[5] Sales and manufacturing companies

[6] Versus 2015 H1 at constant 2015 exchange rates and perimeter (excluding OV)

[7] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

[8] Recurring operating income related to revenue

[9] At 2015 constant exchange rates and perimeter (excluding OV)

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