The German Luxury sports car manufacturer Porsche AG on Wednesday published the financial results for the 2024 financial year, and the group's operating profit contracted by over 20 percent.

Both its sales and revenue declined slightly last year and the operating profit, standing at 5.64 billion euros (6.15 billion U.S. dollars), slid by over 22 percent year on year, data released by the company showed.

The carmaker delivered 310,718 vehicles last year, down by three percent over 2023 and the revenue edged down by about one percent to 40.1 billion euros. The company proposed that its dividend in 2024 should stay at the same level as 2023.

Four out of the five sales regions of Porsche AG, namely Europe, the home market Germany, North America, and the overseas and emerging market, have seen record sales last year. The decrease of sales was attributed to "the continuing challenges in China."

The operating return on sales went down to 14.1 percent in 2024 from 18 percent in 2023. In 2025, the company expects it to decline further to 10 to 12 percent due to "reduced vehicle sales and an unchanged high-cost level in the value chain." (1 euro = 1.09 U.S. dollar)