German holding company Porsche Automobil Holding SE (Porsche SE) recorded a net loss of €20bn in 2024 due to large-scale write-downs of the value of its investments.
Non-cash write-downs on the value of Volkswagen AG’s assets on Porsche SE’s balance sheet totalled €19.9bn, with a further €3.4bn in write-downs related to the stake in Porsche AG. The holding is the majority shareholder of Volkswagen and also owns 25 per cent of Porsche AG’s ordinary shares.
The holding company’s adjusted profit last year fell to 3.2 billion euros from 5.1 billion euros a year earlier.
Porsche SE cut net debt last year by 500 million euros to 5.2 billion euros.
The company’s board of directors recommended a dividend of €1.91 per preferred share and €1.904 per ordinary share for 2024. A year earlier, the dividends were €2.56 and €2.554 per share, respectively. In total, Porsche SE will allocate €584 million to dividends.
In 2025, the company expects adjusted earnings in a broad range of €2.4bn to €4.4bn, with net debt of €4.9bn to €5.4bn at the end of that year.
Porsche SE’s preferred shares are cheaper by 0.2 per cent in trading on Wednesday. Since the beginning of the year, the company’s capitalisation has increased by 3.6% to 11.55 billion euros.