FY 2021 financial results: all-time high revenue and profitability

It’s no secret that 2021 was a challenging year in many ways. A pandemic that still refuses to be defeated, global supply chain issues caused by a rocky trading environment, a lack of semiconductors; we've definitely had easier years in the car industry and in our company.

Nevertheless, we performed strongly in the face of that adversity. We recorded a solid sales increase for the full year, delivering just short of 700,000 new Volvos to customers and increasing market share.

Today we report that financially, we’ve also done very well. As a matter of fact, we’ve set a record in terms of both revenues and profitability for a full calendar year.

Our global revenue came in at SEK 282 bn, an increase from SEK 262.8 bn in 2020, while the operating profit for 2021 amounted to a healthy SEK 20.3 bn, compared to SEK 8.5 bn in 2020. The resulting profit margin is 7.2 per cent, which is close to our mid-term target of consistently achieving an 8 to 10 per cent profit margin.

“I would like to take this opportunity to thank all employees for a great effort and for all we have achieved together,” says our CEO Håkan Samuelsson. “Through collaboration and determination, we’ve made tremendous progress over this last decade. We’ve placed Volvo Cars firmly on the map as a brand that is leading mobility into the future in a safe, sustainable and personal way, showing it is possible to be both profitable and more sustainable.”

Of course, such strong financial results also have a positive impact on our Volvo Bonus programme, as head of Corporate Functions Hanna Fager and our CFO Björn Annwall reveal in the film above. All Volvo Cars employees will receive a bonus this year and the payout level will be a record 200 per cent of the annual bonus target.

This is a deserved reward for all staff after a year of hard work.

To read the press release, please click here