In its latest report, Scania says it continued performing strongly during 2023, increasing both sales and earnings significantly. The manufacturer’s Annual and Sustainability report details its financial, social and environmental performance during the year, showing that Scania Group net sales grew by 28% to SEK 204.1 billion (£15.4bn). Adjusted operating income reached SEK 26.0 billion (£1.96bn) and adjusted operating margin was 12.7%.
Deliveries increased by 13% to 96,727 vehicles, of which zero emission vehicles (ZEVs) amounted to 246 units, slightly lower than last year. Revenue from the service business increased by 11% adjusted for currency, and its order intake increased by 2% to 84,080 vehicles.
In the last quarter, Scania says it saw a strong finish to the year, with net sales up by 21% and deliveries up by 8% to 28,984 vehicles, including 57 zero-emissions ones. However, its order intake for the period decreased by 5% to 22,299 vehicles.
Referencing the effects of geopolitical and macroeconomic instability on the business environment, Scania says it was able to navigate through this, proving its financial resilience and ability to deliver sustainable growth. Its 2023 revenue of 200 billion Krona represents a doubling of sales revenue in seven years.
Scania reports that demand for its products and services remained high in 2023, although adds that in some key markets it decreased from previously very high levels. The company says it managed to stabilise the vehicle order-to-delivery flow significantly and increased deliveries by 13% compared with previous year.
It reports earnings at record levels, positively impacted by higher vehicle and service volume, a strong price and product mix, and currency effects. Inflation, higher raw material prices and some remaining supply chain disturbances impacted earnings negatively, however.
“Like many other businesses, Scania is adapting to a world where the ‘new normal’ means uncertainty and constant disturbances. While we managed to stabilise flows in 2023 and deliver a strong financial performance, we are still working hard together with partners and bodybuilders to improve delivery precision for our customers,” said CEO Christian Levin.
