German automobile giant Volkswagen reported its financial results for the 2024 fiscal year on Tuesday, showing a slight increase in revenue but a sharp decline in profit.

The company's revenue rose to 324.7 billion euros (354.1 billion U.S. dollars), up from 322.3 billion euros in 2023. However, net profit fell 30.6 percent year-on-year to 12.4 billion euros, while operating profit dropped 15 percent to 19.1 billion euros.

The decline was attributed to a "significant increase in fixed costs" and one-off expenses totaling 2.6 billion euros, primarily related to restructuring, the company said.

Amid intensifying market competition and profitability pressures, Volkswagen is ramping up cost-cutting measures. CFO Arno Antlitz said the company's priority is to "consistently reducing costs and increasing profitability."

Following a challenging year in which Volkswagen announced plans to cut capacity at its domestic German plants and shed 30,000 jobs, the group said it expected a modest recovery in 2025.

Volkswagen forecasts revenue growth of up to 5 percent in 2025 while maintaining an operating profit margin target of 5.5 percent to 6.5 percent. However, the company cautioned that ongoing challenges, including political uncertainty, trade restrictions, intensifying competition, commodity and energy price fluctuations, currency volatility, and stricter emissions regulations, could impact its performance.

"Our outlook reflects the global economic challenges and the profound changes that are happening in the industry," Antlitz said. (1 euro = 1.09 U.S. dollar)