BMW Q4 Pre-tax Profit Climbs, Ups Dividend; Sees Weak Profit In FY23
German luxury carmaker BMW AG reported Wednesday weak net profit in its fourth quarter, while pre-tax profit grew with higher revenues and deliveries. The company also lifted its dividend.
For fiscal 2023, Group profit before tax is projected to decrease significantly mainly on the absence of a prior year gain. In its core business, the company expects profitable growth in 2023. BMW shares were gaining around 1 percent in the morning trading in Germany.
For fiscal 2023, Group profit before tax for the year will be hit by the absence of prior year’s one-time gain of 7.7 billion euros in conjunction with the remeasurement of its previous equity interests in BMW Brilliance.
However, the company said it is striving for a high level of profitability in its core business and is targeting an EBIT margin of 8-10 percent in the Automotive Segment for the financial year.
BMW Group projects the main growth drivers to be fully-electric or BEV vehicles and models from the high-end premium segment.
Fully-electric vehicles in 2023 are expected to account for 15 percent of total sales. In the past year, the company more than doubled its BEV sales to over 215,000 units.
Overall, BMW Group expects its deliveries to customers worldwide to increase slightly in the Automotive Segment in 2023.
In fiscal 2022, deliveries as expected were 4.8 percent lower than the previous year at 2.40 million units. According to the company, consistently high customer demand, which was reflected in the company’s strong order book, could not be entirely fulfilled, due to difficulties with the supply of semiconductor components, supply chain disruptions and COVID lockdowns in China.
Electrified vehicles, such as BEVs and PHEVs, accounted for a total of 18.1 percent of deliveries in 2022.
BMW Group also said it aims to exceed the total of 10 million fully-electric vehicles delivered to customers by 2030, with an important milestone expected in 2025, when two million fully electric vehicles is likely to be passed.
Further, the company said its Board of Management and Supervisory Board will propose a dividend of 8.50 euros per share of common stock, up from last year’s 5.80 euros, and 8.52 euros ?per share of preferred stock, up from last year’s 5.82 euros, to the Annual General Meeting on May 11.
In the fourth quarter, BMW Group’s net profit dropped 3.6 percent to 2.18 billion euros from last year’s 2.26 billion euros. Earnings per share, however, grew to 3.43 euros from last year’s 3.39 euros.
Profit before tax was 3.25 billion euros, up 12 percent from last year. Profit before financial result or EBIT was 3.50 billion euros, a growth of 40.7 percent.
Revenues grew 39.1 percent to 39.52 billion euros from 28.41 billion euros a year earlier.
Automotive deliveries grew 10.6 percent to 651,794 units, and Motorcycles deliveries increased 15.7 percent to 43,562 units.
In Germany, BMW shares were trading at 96.29 euros, up 0.72 percent.
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