Porsche predicts lower profitability in the future but increases dividend based on strong 2023 performance.

• BMW anticipates an operating profit margin of 15% to 17% in 2024, a decrease from the 18% achieved in 2023 and 2022.
• In 2024, Porsche will introduce four new car lines, including the Panamera, Macan, Taycan, and 911 models.

Although it warned that profitability will decline this year due to launching new models amid tough economic conditions, it hiked its dividend on the back of a rise in 2023 operating profit.

BMW anticipates an operating return on sales of between 15% and 17% in 2024, a decrease from the 18% margin achieved in 2023 and 2022. In the future, the company aims for an operating return on sales exceeding 20%.

The company's more cautious profitability outlook is due to several factors, including the comprehensive renewal of its product range in 2024, global framework conditions, higher depreciations on capitalized development costs, and continued investments in the brand and the Porsche ecosystem.

The company's shares were down by around 2% in early trade.

In 2024, Porsche will introduce four new car lines, including the Panamera, Macan, Taycan, and 911 models.

Porsche Chairman Oliver Blume stated that 2024 will be a year of unprecedented product launches for the company.

"Our customers worldwide will be thrilled with the new line of exhilarating sports cars we will introduce to the road. This will propel us forward for years to come."

In 2023, Porsche's sales revenue increased by 7.7% to 40.53 billion euros ($44.29 billion), and its operating profit also rose by 7.6% to 7.28 billion euros.

The company announced a dividend of 2.30 euros per ordinary share, which is more than double the 1 euro per share paid out in 2022.

In 2023, Porsche demonstrated our resilience, profitability, and financial strength even in challenging times. Additionally, we have a more balanced sales structure than before, according to Chief Financial Officer Lutz Meschke in a statement.

"In 2025, we will have a flying start, as we lay the groundwork in 2024. Our goal is to achieve sustainable success, which benefits our customers, employees, the company, and our shareholders."

Full-year 2024 sales are predicted to fall within the range of 40 billion to 42 billion euros.

Last week, Porsche's parent company warned that sales growth would slow due to weaker economic conditions, growing competition, and rising costs.