Peugeot owner PSA revs up revenues by 4.9 per cent for the first quarter

Rebecca Smith
PSA is in the midst of a turnaround plan by boss Carlos Tavares
PSA is in the midst of a turnaround plan by boss Carlos Tavares (Source: Getty)

Peugeot and Citroen maker PSA has recorded a boost in revenues for the first quarter, after raising prices.

Read more: Patriotic Vauxhall customers aren't enough to boost its value image

The figures

Revenues at PSA rose by 4.9 per cent to €13.6bn (£11.6bn) in the first quarter from €13bn the year before, boosted by higher sales from new and more expensive vehicles.

This helped to offset the negative impact of exchange rates.

Automotive revenue rose 2.5 per cent to €9bn while sales at its Faurecia parts unit surged by 9.4 per cent.

PSA has upped its full-year outlook to a one per cent rise in Europe and two per cent growth in Latin America, having previously predicted flat demand across both regions.

The company said automotive operating profit margin will average more than 4.5 per cent in the 2016-2018 period.

Why it's interesting

The European car giant has been losing market share across the region after cutting back on discounts to increase profitability. For the first quarter of the year, sales in Europe did rise from 464,904 to 465,312.

PSA is picking up General Motors' Opel and Vauxhall brands in a €2.2bn move that will make it the second-largest car maker in Europe behind Volkswagen. PSA chief executive Carlos Tavares has said he is confident "the Opel/Vauxhall turnaround will significantly accelerate with our support".

Read more: Is PSA Group's purchase of Vauxhall good news for Britain?

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