SEAT S.A. posts all-time high operating profit driven by record CUPRA performance, SEAT double-digit growth and efficiencies

  • Operating profit reached record 625 million euros, return on sales hit 4.4% and turnover increased to 14.3 billion euros last year
  • New investment across the SEAT brand with facelifts to the Ibiza and Arona, and updates to the Leon and Ateca
  • 2024 to see launch of the CUPRA Tavascan and CUPRA Terramar in the brand’s biggest product offensive to date
  • CUPRA to launch in the United States by the end of the decade
  • Electrification of Martorell now advancing at full speed

Barcelona, 21/03/2024. Today, SEAT S.A. presented its 2023 results alongside its strategy for the upcoming years. Last year, according to International Accounting Rules (IFRS), operating profit reached a record 625 million euros, rising 592 million euros (2022: 33 million euros). This represents an improvement in return on sales of 4.1 percentage points, from 0.3% to a positive 4.4%. ​ Annual turnover also reached an historic 14.333 billion euros, 31.0% more than 2022 (10.941 billion). These results confirm the strength of the company and the success of its ongoing transformation strategy.

“We leave behind a year in which SEAT S.A. posted the best financial results in its 73-year history, ensuring that our company continues on its path towards a more profitable future,” said Wayne Griffiths, CEO of SEAT and CUPRA. “2023 has been a year of huge contrasts for the automotive industry and for our company, as we continued to navigate a sea of uncertainty while undergoing the biggest transformation in our history.”

2023: Confirmation of SEAT S.A.’s strength ​

After facing several challenges in recent years, including the rising cost of raw materials, inflation and the impact of war, supply chain stabilisation in 2023 led to an increase in production and deliveries. This allowed SEAT S.A. to deliver 519,176 cars (2022: 385,592), rising 35.3% compared to the previous year. CUPRA once again broke records with 230,739 deliveries, up 50.9% compared to 2022 (152.896). The SEAT brand, meanwhile, returned to double-digit growth with 288,437 deliveries (2022: 232,696; +24.0%).

“In 2023, SEAT S.A. took a big step on its journey of transformation: we aimed to make a significant improvement, and that’s what we managed to do. We have reached all-time records in turnover, operating profit and operating cash flow. This perfectly reflects the positive effects of the CUPRA brand’s volume growth and the SEAT brand’s volume recovery, as well as the importance of the progress we have made with our Performance Improvement Program,” said David Powels, Vice-President for Finance and IT at SEAT S.A.

Under Spanish Accounting Rules (IAS), SEAT S.A.’s operating profit reached a record 505 million euros, rising 619 million euros (2022: -114 million euros). This represents an improvement in return on sales of 4.7 percentage points, from a negative 1.1% to a positive 3.6%. ​ Annual turnover reached an all-time high of 14.169 billion euros, 35.0% more than 2022 (10.513 billion). Profit after tax increased 480 million euros to 548 million euros (2022: 68 million euros).

Moreover, EBITDA reached its highest level in five years to 1.125 billion euros, representing a 123% increase from the 505 million euros registered in 2022. SEAT S.A.’s investment strategy continued in 2023, reaching a total of 5.3 billion euros over the past five years. The 44% increase in R&D investment, with a total of 939 million euros, shows SEAT S.A.’s commitment to bringing future CUPRA and SEAT products to the market.

Investing in the SEAT brand

Looking to the future, SEAT S.A. has the right strategy in place to maintain the company’s profitable growth. The SEAT brand will play a key role in this and the company will launch improved plug-in hybrid and fuel-efficient cars throughout the SEAT brand until the end of the combustion era. ​ The Arona and Ibiza will receive facelifts in 2025 and in the coming months, the brand will launch an updated and improved version of the SEAT Leon, featuring technical and technological upgrades. Furthermore, the Ateca will also be updated and its lifecycle extended.

“We want to get the SEAT brand back to where it belongs, continuing the double-digit growth from last year with new investments in the brand and its models. We are also looking at what we can deliver in the electric world under the SEAT brand. When it comes to SEAT, I promise you that the best is still to come,” added Wayne Griffiths.

A new chapter for CUPRA

Driving the ongoing transformation of SEAT S.A., CUPRA is entering a new chapter in its history. 2024 marks the beginning of its biggest product offensive to date with the launch of its new heroes for a new era. This year sees the launch of the CUPRA Tavascan, the brand’s second all-electric model, and the CUPRA Terramar, its electrified SUV. CUPRA also announced new and updated versions of its Leon and Formentor models, which will be presented in the upcoming weeks. ​

At today’s event, CUPRA also confirmed the next major step in its globalization by confirming it will launch in the United States.

“By the end of the decade CUPRA will be entering the U.S. market. We plan to launch with the battery electric version of the Formentor and a bigger electric crossover SUV. That crossover SUV will be produced at Volkswagen Group factories in the North America region, including Mexico. Initially, CUPRA will launch in selected states in the East and West coasts and the Sun Belt states. This will be done through a new distribution model,” announced Wayne Griffiths.

The brand will also accelerate its global expansion this year with the opening of new CUPRA City Garages in Istanbul, Vienna and Manchester, all aimed at fulfilling its ultimate ambition to become a truly global brand.

Martorell’s electrification journey continues

SEAT S.A. is committed to the electrification of Spain and as part of the Future: Fast Forward project, continues to make progress on its ambition to turn the country into a hub for electric mobility in Europe. The company is already building its battery system assembly plant in Martorell and in September it will start the transformation of Line 1 at its facilities ahead of production of the CUPRA Raval and Volkswagen ID.2aII.

Addressing the challenges of market acceptance of electric vehicles in Spain, Wayne Griffiths stated that “informing customers that electric vehicles are part of the solution to sustainable mobility, not part of the problem is key, together with improvements to taxation and incentives for the purchase of electric vehicles and the boosting of charging infrastructure.”

Rising inflation, high interest rates, political instability and conflicts anticipate a challenging year ahead. However, buoyed by the return to growth of the SEAT brand and with upcoming launches for the CUPRA Leon and Formentor, and the brand new CUPRA Tavascan and Terramar, 2024 looks set to be another landmark year for the company.

 

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À propos de CUPRA

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CUPRA

CUPRA is an unconventional challenger brand from the SEAT Group, based on stimulating style and contemporary performance. Since its launch as an independent brand in 2018, sales have shot up and CUPRA closed 2019 with a growth of 72% over the previous year with nearly 25,000 units sold. In 2020, the CUPRA Leon and the CUPRA Formentor, the first model designed specifically for the brand, will hit the market. CUPRA is expanding its dealer network to reach nearly 520 specialized points of sales around the world by the end of 2020.

Coinciding with its second anniversary, CUPRA has inaugurated its new headquarters in Martorell (Barcelona), the CUPRA Garage, a 2,400 square meter building located next to SEAT's corporate headquarters. CUPRA also has a racing car workshop, the CUPRA Racing Factory, where it developed the first 100% electric touring racing car, the CUPRA e-Racer. Moreover, CUPRA has become the first automotive brand to participate in the electric SUV off-road competition Extreme E.

In addition to becoming F.C. Barcelona’s exclusive automotive and mobility partner and World Padel Tour’s premium sponsor, CUPRA has formed an elite team of ambassadors, including the German goalkeeper Marc ter Stegen, the Swedish pilot Mattias Ekström and five of the best padel players in the world, among others.

Group profile

In existence since 1805, and across family generations, D’Ieteren seeks growth and value creation by pursuing a strategy on the long term for its businesses and actively encouraging and supporting them to develop their position in their industry or in their geographies. The Group has currently the following activities:

  • D'Ieteren Automotive distributes Volkswagen, Audi, SEAT, Škoda, Bentley, Lamborghini, Bugatti, Porsche and Yamaha vehicles in Belgium. It has a market share of around 22% and 1.2 million vehicles on the road. Its business model is evolving towards improving the lives of citizens with fluid, accessible and sustainable mobility. Sales and adjusted operating result reached respectively EUR 3.6 billion and EUR 119.0 million in FY 2019.
  • Belron (54.85% of the voting rights) has a clear purpose: “making a difference by solving people’s problems with real care”. It is the worldwide leader in vehicle glass repair and replacement and operates in 39 countries, through wholly owned businesses and franchises, with market leading brands – including Carglass®, Safelite® and Autoglass®. In addition, Belron manages vehicle glass and other insurance claims on behalf of insurance customers. Sales and adjusted operating result reached respectively EUR 4.2 billion and EUR 400.5 million in FY 2019.
  • Moleskine (100% owned) is a premium and aspirational lifestyle brand which develops and sells iconic branded notebooks and writing, travel and reading accessories through a multichannel distribution strategy across 114 countries. Sales and adjusted operating result reached respectively EUR 163.9 million and EUR 18.6 million in FY 2019.
  • D’Ieteren Immo (100%) groups together the Belgian real estate interests of D’Ieteren Group. It owns and manages approximately 30 properties which generated EUR 19.7 million net rental income in FY 2019. It also pursues investment projects and carries out studies into possible site renovations. 

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Contact

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