Rolls-Royce has reported “strong first half results,” which have given the company the confidence to raise its guidance. Despite facing challenges in the supply chain environment, the business saw a significant increase in operating profit. Through its transformation programme and strategic initiatives, Rolls-Royce achieved a 74% rise in underlying operating profit to £1.1bn, up by £0.5bn from the previous period. This growth was fueled by commercial optimization and cost efficiency benefits across the group.
Furthermore, underlying revenue exceeded £8bn, showing an improvement from the just under £7bn reported in the same period last year. As a result of these positive developments, full-year guidance has been revised with Rolls-Royce now anticipating underlying operating profit to fall between £2.1bn and £2.3bn.
CEO Tufan Erginbilgic stated, “Our transformation efforts are quickly turning Rolls-Royce into a high-performing, competitive, resilient, and growing business. Despite the challenges in the supply chain environment, we are effectively managing our operations and expanding the earnings and cash potential of the business. We remain on track to achieve our mid-term targets.”
He added, “The strong first half results showcase our continuous progress in implementing strategic initiatives and maintaining a sharp focus on commercial optimization and cost efficiencies across the Group. This performance, coupled with our enhanced financial resilience, has provided us with the confidence to adjust our 2024 guidance and reintroduce shareholder distributions for the full year 2024 results.”
