Škoda Group Revenue Rises, Profits Fall Due to COVID-19 and Ukraine

Škoda Group reports a rise in revenue but a decrease in profits due to the pandemic and the Russian war in Ukraine. Despite the challenges, the company is preparing for stabilization and further development under new leadership.

Škoda Group reports a rise in revenue but a decrease in profits due to the pandemic and the conflict in Ukraine. Despite the challenges, the company is preparing for stabilization and further development under new leadership.

The group reported a year-on-year revenue increase of 81% to €1.382 billion. EBITDA decreased by 57% year-on-year to €21.8 million, reflecting the lingering impacts of the COVID-19 pandemic and the Russian aggression in Ukraine. Last year, the group secured several significant contracts and significantly increased the number of production hours and delivered vehicles.

"The past year has been a period of significant changes for Škoda Group, both in organizational structure and in the organization of our business activities. The high investments we have made in our plants in recent years have resulted in increased production capacity and performance last year. In 2023, we delivered 400 vehicles, which is 88% more than the previous year. The number of production hours increased by 16% year-on-year to 5.1 million. A major task for the coming years will be to further increase the efficiency of internal processes," said Petr Novotný, CEO and Executive Chairman of the Board of Škoda Group.

"In the upcoming period, we plan to keep the number of new orders and the EBITDA indicator at a stable level. Of course, we also plan to continue investing in research and development, into which we invested over €85 million last year. Technology is evolving at a tremendous pace, and if we want to stay at the forefront, we must be able to offer modern solutions to our partners," added Jaroslav Zoch, CFO of Škoda Group.

Škoda Group underwent a major organizational change at the end of 2023. Petr Novotný was appointed as the CEO of Škoda Group, followed by other structural changes within the group. The most significant milestone of 2023 was winning a contract to produce up to 200 trams for Prague, worth over CZK 16 billion. Other major business successes include the production of night trains for Finnish operator VR, a contract to supply metro trains to Sofia, Bulgaria, and new trams for Kassel, Germany. Škoda Group has also strongly established itself in Western markets – currently working on contracts worth over €250 million in Italy and being a key supplier of narrow-gauge trams in Germany.

Source: Škoda Group Press Releases