BMW says 2021 revenue surged because it favored higher-margin automobiles throughout chip scarcity

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German automaker BMW AG stated Thursday its income and web revenue hit all-time highs in 2021, regardless of elevated spending on analysis and growth associated to electrical automobiles.

In a preview of outcomes that it’s going to current at its annual assembly subsequent week, BMW stated its full-year web revenue jumped to 12.46 billion euros, or roughly $13.7 billion, from simply 3.86 billion euros in 2020. Income jumped 12.4% 12 months over 12 months to 111.24 billion euros, or about $122.4 billion.

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Each revenue and income notched data for the corporate.

The rise in BMW ‘s annual income was pushed the old style method: by elevated gross sales of vehicles, SUVs and bikes. The automaker’s automobile deliveries, together with vehicles and SUVs, rose 8.4% from its coronavirus-challenged 2020 outcome, to only over 2.5 million automobiles. That got here regardless of manufacturing disruptions associated to an ongoing international scarcity of semiconductor chips.

About 13% of these 2021 deliveries have been “electrified” automobiles, that means plug-in hybrids or totally electrical fashions. Gross sales of BMW Group’s electrified automobiles have been simply over 328,000 in 2021, up 70% from the corporate’s 2020 outcome, however nonetheless properly wanting EV chief Tesla’sĀ 936,000 2021 whole.

BMW is aiming to have totally electrical automobiles account for a minimum of half of its international deliveries by 2030.

The EV push is coming at a value. BMW’s analysis and growth spending, a lot of which was targeted on new EV architectures and elements, rose 10.7% to six.3 billion euros. Nevertheless it remained roughly in keeping with 2020 when expressed as a proportion of income, about 6.2%.

BMW’s profitability additionally surged as the corporate prioritized manufacturing of its most worthwhile automobile traces amid the chip scarcity, a great signal for buyers hoping that the corporate will be capable of comfortably finance its transition to zero-emissions automobiles. The working revenue margin in BMW’s automotive phase, a broadly watched determine amongst auto analysts, rose to a wholesome 10.3% in 2021 from simply 2.7% in 2020 and 4.9% in 2019, earlier than the Covid-19 pandemic roiled international industries.

Gross sales of BMW bikes rose 14.8% in 2021, to only over 194,000. The motorbike unit’s working revenue margin rose to eight.3% from 4.5% in 2020.

“Our enterprise figures are proof that we have been capable of mix the underlying transformation and the most important funding it entails with robust operational success in a really risky surroundings in 2021,” stated Nicolas Peter, who holds a title equal to a U.S. firm’s chief monetary officer at BMW. “We’re in a great place and optimistic concerning the future.”

BMW plans to share a few of that hefty revenue with its shareholders. The corporate stated that it’s going to suggest an annual dividend of 5.80 euros per share, up from 1.90 euros in 2020, in addition to a brand new share repurchase program, at subsequent week’s annual assembly.

Individually, BMW introducedĀ on Thursday that it has agreed to buy Alpina, the model of a longtime builder of higher-performance variations of BMW vehicles, a few of which have been provided on occasion by way of BMW’s personal dealership community. The Alpina model will finally turn out to be an in-house trim line for BMW, much like the AMG model at rival Mercedes-Benz.

BMW will report its full fourth-quarter and full-year outcomes at its annual convention for shareholders, set to start on March 16.

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