BMW Group’s Q1 Report: 18.3% YoY Total Revenue Growth
BMW Group’s
On May 4, the BMW Group disclosed its financial report for the first quarter of this year. Data show that from January to March this year, the BMW Group’s total revenue was 36.853 billion euros, a year-on-year increase of 18.3%.
New car deliveries were approximately 588,100; the profit before interest and taxes (EBIT) was 5.375 billion euros, a year-on-year increase of 58.5%, The profit margin before interest and tax was 13.9%, which was higher than the target expectation of 10%; the profit before tax (EBT) was 5.129 billion euros; the proposed dividend was 5.31 euros per ordinary share.
It is worth mentioning that the BMW Group’s research and development expenditure in the first quarter was about 1.554 billion euros, an increase of 11.7% year-on-year. The proportion of research and development expenditure in the overall revenue is about 4.2%, which is in line with its long-term target expectation of 4%~5%.
“As expected, the BMW Group is off to a solid start in 2023. Amid a host of turbulent factors, including geopolitical and macroeconomic tensions, high inflation and interest rates in some markets, and persistently high prices for some raw materials, the BMW Group The group has achieved the above performance.
This is mainly due to the substantial growth in sales of pure electric models and the drive of high-end models.” Peter, director of finance at BMW Group, said that in the first quarter of 2023, the operating performance of BMW Group’s joint venture in China.
BMW Brilliance It is fully integrated into the profit and loss of the automotive business, while last year, BMW Brilliance’s consolidation only started in February. Therefore, the performance of the automotive business in the first quarter of this year cannot be directly compared with the same period last year.
According to financial report data, in the first quarter of this year, the BMW Group’s cumulative sales of pure electric vehicles were close to 65,000, a year-on-year increase of 83.2%, and the proportion of new car deliveries increased to 11%.
Among them, the sales of pure electric vehicles of the BMW brand increased by 112%, with a total sales of about 56,000 vehicles.
Specific to the automotive business field, in the first quarter of this year, the BMW Group’s automotive business revenue was 31.268 billion euros, a year-on-year increase of 17%; the profit before interest and tax was 3.777 billion euros, a year-on-year increase of 59.6%; the profit margin before interest and tax was 12.1%.
The figure for the same period was 8.9%; pre-tax profit was 3.828 billion euros; free cash flow was 1.981 billion euros.
Peter said that in the first quarter of this year, BMW Group’s sales in the European market remained stable, while the US market achieved significant growth, but the Chinese market experienced slight fluctuations.
At the same time, the comprehensive consolidation of BMW Brilliance also increased the revenue and cost of sales of the automotive business unit in the first quarter.
According to official data, in the first quarter of 2023, the BMW Group will deliver a total of about 194,800 new cars in the Chinese market.
Among them, the sales volume of pure electric models represented by i3 and iX3 in the first quarter was about 19,800, a year-on-year increase of 223.6%.
“Our product prices continued to remain firm in the first three months of the year. The product mix has also developed positively, especially in the premium segment.
Rising raw material and commodity prices, higher R&D spending and a higher proportion of pure electric vehicle sales It also pushed up the cost of sales.
In the first quarter, we made up for the increase in these costs through the improvement of pricing and product mix.” Peter predicts that in 2023, the BMW Group’s automotive business is expected to achieve the goal of free cash flow of 7 billion euros .
In addition, the BMW Group announced that by mid-2023, it will complete its current €2 billion share buyback program, which was launched in July 2022.
Starting after the end of this share repurchase program, BMW Group will conduct a new round of share repurchase program with a total amount of 2 billion euros, which will be completed by December 31, 2025 at the latest.
On the basis of the performance in the first quarter, the BMW Group expects that its full-year performance progress will be consistent with its previous outlook.
The overall car sales will increase slightly, and the proportion of pure electric vehicle sales will increase significantly. The profit margin before interest and tax of the car business is expected to remain stable. At 8%~10%.
“The solid financial position provides the basis for the transformation of the BMW Group. We will continue to invest in new models and new structures, with a clear focus on the themes of the future: electrification, digitalization and autonomous driving,” said Peter. Cautious and flexible. In a volatile business environment, we remain on track to achieve our targets for this year and remain confident for the remainder of 2023.”
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