Swedish automaker Volvo Cars on Wednesday reported an uptick in first-quarter core operating profits driven by strong retail sales.
First-quarter core operating profit was 6.8 billion Swedish kronor ($629 million), an 8% increase year-on-year. The figure excludes joint ventures and associates.
Revenue was 93.9 billion, down 2% from the first quarter 2023.
Retail sales nevertheless rose 12% year-on-year to 182,687 cars, the company said, after a new all-time monthly sales record in March.
The company said the results showed it was “on track” toward its target of at least 15% annual sales volume growth.
“We have had a strong start to the year, with our first quarter results laying a solid foundation for the year ahead,” CEO Jim Rowan said in a statement.
The growth included a modest uptick in electric vehicles sales, as the company has doubled down on the category. EV gross margins rose to 16% in the first quarter from 7% the year prior.
“Our focus is not only on delivering the best EVs with the latest technologies, but to do so with solid margins,” Rowan said.
Looking ahead, Volvo Cars said it expects a further rise in 2024 retail sales compared to the previous year, with the share of fully electric vehicles forecast to increase “considerably.”
