BMW Group’s report for the first quarter of this year emphasizes the increase in sales of electric cars, but the overall information shows a declining financial performance for the German company.
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The BMW Group saw a sharp decline in profit in the first quarter of this year amid stagnating company revenues. The result is quite surprising, but it comes in a context of sales that brought an increase of only one percent, with quite significant decreases for MINI, Rolls Royce and the Moto division.
BMW Group revenues in the first three months of the year amounted to 36.6 billion euros, down slightly from 36.8 billion (-0.6%), the decrease in the Auto segment being over 1%. However, the EBIT value dropped significantly, by 24.6%, to 4.05 billion euros, i.e. a minus of 1.3 billion euros compared to last year. In the Auto segment, the drop was even higher, of 28.2%, where a decline of one billion euros was recorded.
As a result, the company’s net profit for the January-March period decreased significantly by almost 20 percent, to 2.9 billion euros, compared to 3.66 billion, in 2023. Earnings per share lost 16.8%, reaching 4.42 euros, compared to 5.31 euros in 2023.
The group’s EBIT margin fell to 11.4%, being 2.5 points lower than a year ago, and the margin in the automotive segment fell to the lower end of the target range of 8-10 percent, compared to 12.1% in 2023, in the similar range.
BMW highlights in its report the progress made by electric cars sold by the group, which increased by 28% to a volume of around 83,000 vehicles, bringing the total number of electrified vehicles delivered by the company in the last two years to over 1.1 million units. The share of electric vehicles in total sales was 13.9%.
“The last nine quarters underline the continuity and reliability of BMW: as planned, we are dynamically expanding the share of electric vehicles while maintaining a high level of profitability. Some call this transformation – for us, it’s continuous progress,” said BMW AG CEO Oliver Zipse. “We will stay the course: we offer our customers the latest innovations and the latest technology – for all vehicle powertrains. As a result, we continue to generate strong demand with strong products.”
Tags: BMW declining financial performance
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