Polestar Publishes Full Year 2023 Results; FY23 Revenue $2.38B Vs $2.45B YoY
Author: Benzinga Newsdesk | June 28, 2024 08:15am
Key financial highlights
The below table summarizes preliminary key financial results for the twelve months ended December 31, 2023:
(in millions of U.S. dollars)
(unaudited)
For the year ended December 31,
% Change
2023
2022
%
(Restated)
Revenue
2,377.7
2,445.0
(3)
Cost of sales
(2,792.4)
(2,346.7)
19
Gross (loss) profit
(414.7)
98.4
n/m
Gross margin (%)
(17.4)
4.0
n/m
Selling, general and administrative expense
(954.9)
(839.9)
14
Research and development expense
(158.4)
(174.9)
(9)
Other operating income (expense), net
68.5
(0.3)
n/m
Listing expense(1)
—
(372.3)
n/m
Operating loss
(1,459.5)
(1,289.1)
13
Adjusted operating loss(2)
(1,459.5)
(916.8)
59
(1) The listing expense represents a non-recurring, non-cash, share-based listing charge, incurred in connection with the business combination with Gores Guggenheim, Inc (GGI). on June 23, 2022
(2) Non-GAAP measure. See Appendix B for details and a reconciliation of adjusted metrics to the nearest GAAP measure.
Revenue decreased USD 67.3 million, or 3%, mainly driven by higher discounts and lower sales of carbon credits, partially offset by an increase in vehicle sales volumes.
Gross result decreased USD 513.0 million as the result of impairment of Polestar 2 intangible assets of USD 240.5 million an property, plant and equipment of USD 40.3 million, assets under operating lease of USD 48.9 million as well as increased inventory impairment of USD 120.1 million. Additionally, higher material and freight costs contributed to overall decrease, only partly offsetting lower warranty costs and positive foreign currency effect. The decrease is also attributed to decreased revenue, as stated above.
Selling, general and administrative expenses increased USD 115.0 million, or 14%. This increase is primarily due to higher advertising, sales, and promotional activities related to commercial campaigns and events for the Polestar 3 and Polestar 4 global launches.
Research and development expenses decreased USD 16.5 million, or 9% due to a decrease in amortization costs from internal development programs reaching program start now recognized in cost of sales. This decrease was partially offset by the continued investments in future vehicles and technologies.
Other operating income (expense), net changed from an expense of USD 0.3 million for the year ended December 31, 2022 to income of USD 68.5 million for the year ended December 31, 2023. This change is primarily due to positive foreign exchange effects on working capital, sales of plant operation services and a gain on disposal of assets held for sale.
Operating loss increased by USD 170.4 million, or 13%, with lower revenue, higher cost of sales including higher impairment of USD 450 million and a Q2 2022 one-time share-based listing charge of USD 372.3 million.
Adjusted operating loss of USD 542.7 million, primarily due to lower gross profit during the year ended December 31, 2023.
