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Harness strength when implementing new plan for profitable growth
"We have completed our plan in record time thanks to the involvement of the entire company and its stakeholders," said Carlos Tavares, Chairman of the PSA Peugeot Citroën Managing Board. "I am delighted with this collective success. It puts our company back in the race and proves its potential. In an unsettled international environment, agility and operational excellence are key to success. We will be able to harness this strength when implementing our new plan for profitable growth".
The Group's pro forma revenue for 2015 was €56,328 million, compared with €53,301 million in 2014. After reclassification of Faurecia's Automotive Exteriors business, net revenue was up 6%, to €54,676 million.
The Automotive division's revenue showed a similar improvement on 2014, rising 4% to €37,514 million. The main growth drivers were an increase in net prices, positive product mix and volume effects, as well as a favourable currency impact.
Group Recurring Operating Income tripled to €2,733 million in 2015, from €797 million in 2014. Growth was driven mainly by the Automotive division, which posted a €1,808 million increase on the back of a positive product mix, which reflected the success of a young vehicle range, and further cost-cutting initiatives in the second half of 2015. More than one-third of the improvement was due to a favourable operating environment.
The Automotive division's pro forma Recurring Operating Income, which includes 50% of the results of the Chinese joint ventures, was up €1,882 million to €2,248 million.
The Group's non-recurring expense of €757 million in 2015 was primarily due to restructuring costs incurred by the Automotive division.
The Group's financial expense stood at €642 million compared with €755 million in 2014.
The Group's net profit for the period totaled €1,202 million, up €1,757 million on 2014.
Banque PSA Finance reported Recurring Operating Income of €514 million2 , a rise of €177 million on 2014. The Group's strategic partnership with Santander Consumer Finance allows it to benefit from some of the most competitive refinancing conditions on the market.
Faurecia's Recurring Operating Income amounted to €830 million, a year-on-year increase of €235 million.
Total inventory, including independent dealers, stood at 350,000 vehicles at 31 December 2015, up 11,000 units from end-2014.
The manufacturing and sales companies' net financial position at 31 December 2015 was a positive €4,560 million, up €4,012 million on 31 December 2014.
For 2016, the Group expects the automotive market to grow by about 2% in Europe and 5% in China, and to shrink by around 10% in Latin America and 15% in Russia.
The Group exceeded its operational targets
With €3.8 billion in operational free cash flow generated in 2015, the Group has exceeded its target of €2 billion for the 2015-2017 period.
The objective was to reach an operating margin 3 of 2% for the Automotive division in 2018, targeting 5% within the timing of the next mid-term plan 2019-2023. That target was also exceeded ahead of schedule, with the Automotive division reporting a 5% operating margin as of 2015.
PSA Peugeot Citroën will present its plan for profitable growth on 5 April 2016.