Annual Result

(Condensed, in accordance with the German Commercial Code)

Unit sales of Volkswagen AG in 2020 were down on the previous year due to the negative impact of the Covid-19 pandemic, while profit increased.

Additional special items in connection with the diesel issue amounting to €0.8 billion were recognized in fiscal year 2020. This was mainly due to further provisions for legal risks. Special items had an impact of €−0.8 (−1.8) billion on net other operating result.

At €67.5 billion, sales in the reporting period were down 16.2% year-on-year largely due to the pandemic and the measures taken to contain the spread of the SARS-CoV-2 virus. Sales generated abroad accounted for a share of €40.7 billion or 60.3%. Cost of sales decreased by 15.1% to €63.4 billion.

Gross profit on sales fell accordingly to €4.1 (5.9) billion.

At €7.3 billion, distribution, general and administrative expenses were down €0.7 billion on the prior-year figure.

The net other operating result was €1.3 billion higher, at €0.4 billion. The rise was due particularly to lower expenses for legal and litigation risks.

The €0.7 billion increase in the financial result to €9.8 billion resulted mainly from lower write-downs of long-term financial assets.

Taxes on income declined to €−0.7 (−1.2) billion, particularly due to lower current tax expense and tax refunds for prior years, taking net income for fiscal year 2020 to €6.3 (5.0) billion.

INCOME STATEMENT OF VOLKSWAGEN AG

€ million

 

2020

 

2019

1

Including write-downs of long-term financial assets.

 

 

 

 

 

Sales

 

67,535

 

80,621

Cost of sales

 

−63,418

 

−74,700

Gross profit on sales

 

4,117

 

5,921

Distribution, general and administrative expenses

 

−7,269

 

−7,948

Net other operating result

 

398

 

−914

Financial result1

 

9,787

 

9,115

Taxes on income

 

−693

 

−1,215

Earnings after tax

 

6,338

 

4,958

Net income for the fiscal year

 

6,338

 

4,958

Retained profits brought forward

 

855

 

0

Appropriations to revenue reserves

 

−3,165

 

−1,685

Net retained profits

 

4,028

 

3,273