Despite supply-chain and economic headwinds, the company posted annual net sales of 473.5 billion Swedish krona ($45.2 billion), a nearly 30% increase compared with fiscal year 2021.
Adjusted operating income rose to SEK50.47 billion ($4.8 billion), up from SEK41 billion ($3.9 billion) in 2021, and adjusted operating margin was 10.7%. The company reported operating cash flow of SEK35.3 billion ($3.4 billion).
“We have a strong foundation in terms of our financial position, customer relations, industrial backbone, technology, products and services and — most importantly — people,” Volvo Group president and CEO Martin Lundstedt said in a statement. “These qualities and capabilities will be equally as important as we move forward.”
Volvo Penta’s fiscal year 2022 sales of both engines and services increased 25% to SEK18.1 billion ($1.7 billion). The company delivered 17,924 engine units, up 775 units from 2021. Adjusted operating margin amounted to 14%.
According to the statement, the higher adjusted operating income was primarily an effect of price realization and positive mix effects on engines, as well as price realization and increased volumes in the service business, which were partially offset by increased material and freight costs and higher research and development and selling expenses.
The company will hold its annual meeting April 4 and release its first-quarter results April 20.
