With a major upswing in sales demand and production, SEAT closed 2013 with the highest revenue in its history, having posted a turnover of 6,473 million euros – that’s 6.3 per cent more than the previous year.
Martorell factory records its highest production volume since 2007
“2013 was a difficult and demanding year, but SEAT proved its potential by joining the ranks of the fastest growing brands in Europe and set sales and production records for the past years,” said SEAT President Jürgen Stackmann during the presentation of the 2013 results.
Fierce market competition in Western Europe (SEAT’s largest trading region), driven by the challenging economic difficulties in the region, resulted in diminished revenue per unit – one of the key factors of an operating result of -217 million euros in 2013, compared to -134 million euros the previous year1. The operating result was also affected by higher personnel and restructuring costs, and an increase in amortisations due to the launch of new models.
SEAT has made enormous investment efforts over the past five years in order to guarantee its future, amounting to over 2,600 million euros for investments and R&D expenses. Earnings after tax totalled -149 million euros compared to -30 million the previous year.
The company’s EBITDA (earnings before interest, tax, depreciation and amortization) improved by 73 per cent to a total of €221m, and operating cash-flow went up by 70 per cent to €358m. For the first time since 2007, investments were fully covered by operating cash flow. Holger Kintscher, Vice-President for Finance and Organization, stressed that “SEAT has carried out an important streamlining of the balance sheet that consolidates its financial position. The company has considerably increased its ability to self-finance investments and has also improved the quality of its operating business”.
Quality and efficiency
With more than 102,000 units delivered worldwide (+44.4 per cent), the Leon holds the key to explaining SEAT’s positive sales performance in 2013, as overall brand sales reached 355,000 units – an increase of 10.6 per cent. Its five-door version became the brand’s best-selling model in several markets (Germany, United Kingdom2, France, Italy and Turkey, amongst others). SEAT took advantage of the crisis to reduce its dependence upon the domestic market and expand internationally, exporting 83 per cent of its output last year compared to 75 per cent in 2009.
Together with the Leon, the Ibiza and Altea ranges and the second complete year of production of the Audi Q3 gave SEAT its highest production volume in the Martorell facilities since 2007, with an output of more than 390,000 units (+3.4 per cent). On the 20th anniversary of its inauguration, the Martorell factory was elevated with the prestigious Automotive Lean Production award for the efficiency of its production processes.
The quality of SEAT’s processes and products gained widespread international recognition, which further boosted the company’s brand image. Three SEAT models (Leon, Ibiza and Alhambra) were distinguished with several awards in many countries, particularly Auto Express Car of the Year in the United Kingdom and Car of the Year in Spain for the Leon.
- SEAT is preparing its individual financial statements according to the Spanish General Accounting Plan, without including its subsidiaries. Volkswagen applies international accounting standards (IAS/IFRS) and consolidates the figures of the SEAT brand.
- While total Ibiza model sales (comprising SC, five-door and ST body styles) eclipsed overall Leon sales in 2013, the five-door Leon was the single biggest selling car in SEAT’s range.