Note: This press release is a 1:1 copy of the original issued
by BMW headquarters in Germany. No adaptations have been made to
cater for the Irish market.
Munich. The BMW Group achieved its business
objectives for financial year 2023, as forecasted. Despite strong
competition and volatile conditions, the company successfully
maintained its profitable growth and defended its leading position in
the global premium segment: A total of 2,554,183
premium vehicles weredelivered to customers in the
year to the end of December (2022: 2,399,632 units /
+6.4%) ‒ including 717,620 units in
the fourth quarter (Q4 2022: 651,794 units / +10.1%).
Deliveries for the full year had a solid increase, resulting in a
market share of 3.3%.
High demand for its products was the driver for the BMW Group’s
continuing strong financial performance: The Group EBT
margin came in at 11.0% (2022: 16.5%; Q4:
8.6%; 2022: 8.2%), above the strategic target of 10%. The EBIT
margin in the Automotive Segment of 9.8%
(2022: 8.6%; Q4:
8.5%; Q4 2022: 8.5%) was within the forecast target
range of 9.0-10.5%.
Throughout 2023, the company’s fresh and attractive range of
fully-electric vehicles was a key growth driver. The BMW Group
delivered a total of 375,716 fully-electric cars
(2022: 215.752 units / +74,1%) to customers,
achieving a share of around 15% of total sales, as
planned. Including the PHEVs delivered, the BMW Group sold a total of
565,875 electrified vehicles (2022:433,792 units /
+30.5%) and thus achieved a sales share of 22%.
The electrification of the vehicle portfolio contributes
significantly to CO2 emissions reduction in the Group and also to the
continued reduction of CO2 fleet emissions. In the European fleet, the
BMW Group continued to reduce emissions in 2023: At 102.1
grams per kilometre of CO
2 (according to WLTP; 2022: 105 g/km / -2.8%), the
preliminary figure was significantly below the target set by the
European Union of 128.5 grams per kilometre.
“The year 2023 underlined how we are implementing our strategy
consistently and successfully. We posted strong growth and
substantially increased our percentage of fully-electric vehicles,
while improving our operational profitability. A lot of people talk
about ‘transformation’. For us, it’s more a question of continuous
progress,” said Oliver Zipse, Chairman of the
Board of Management of BMW AG, on Thursday. “We are
advancing forward with our course – offering our customers the newest
innovations and the latest technology, regardless of the vehicle’s
powertrain. In this way, we aim to continue to deliver strong products
for strong demand.”
Solid increase in Group revenues
Group revenues
reported a solid increase in the full year and climbed to €
155,498 million (2022: € 142,610 million / +9.0% /
adjusted for currency translation effects: +13.1%).
In the period from January to December 2023, the revenues of BMW
Brilliance Automotive Ltd. (BBA) were fully included; in the prior
year, this was only the case from 11 February 2022 onwards, following
full consolidation. This should be factored into the year-on-year comparison.
In addition to full consolidation, revenues were primarily driven by
higher sales volumes and positive product mix effects. Higher interest
rates and tailwinds from loan financing also contributed to the growth
in revenues – which were impacted by currency headwinds from the
Chinese renminbi and the US dollar.
R&D expenses reach new high
Group research and development costs for the full year rose
significantly to € 7,538 million (2022: € 6,624
million / +13.8%). In addition to development
expenses for new models, like the new BMW 5 Series, the X3 and X5
(model update), Rolls-Royce Spectre* and future models for the NEUE
KLASSE, R&D spending was primarily focused on further
electrification and digitalisation of the vehicle portfolio and on
automated driving.
The R&D ratio (according to the German Commercial
Code) for the full year was 5.0% (2022:
5.0%) and therefore at the high end of the company’s long-term target
range of 4.0-5.0%.
The BMW Group's capital expenditure increased in the
full year to €
8,836
million (2022: € 7,791 million /
+8.5%). Substantial investment was channelled into
the electrification and autonomous driving modules, as well as setting
up high-voltage battery production in various markets and plant
construction in Debrecen, Hungary.
The capex ratio for the 12-month period came in at
5.7% (2022: 5.5%).
“We are making major investments in innovative technologies and
electrification and digitalisation of our products and plants. We are
investing in the future of the BMW Group and generate a strong free
cashflow. Our strong financial performance paves the way for this. Our
profitability today lays the foundation for our success in the future.
Thanks to our highly efficient premium vehicles with leading
technology, we aim to maintain our profitable growth in the future,”
said Walter Mertl,
member of the Board of Management responsible for Finance.
Group earnings (EBIT) significantly higher
The company's full-year earnings before financial result
(EBIT) reflected the BMW Group’s strong operating
performance: In 2023, EBIT climbed to €
18,482 million(2022: € 13,999 million /
+32.0%). In addition to the full consolidation of BBA
and higher vehicle deliveries, lower intersegment eliminations related
to the leasing business also had a positive effect.
Between January and December, the BMW Group reported pre-tax
earnings (EBT) of €
17,096 million (2022: € 23,509 million /
-27.3%). Here, the negative fair value driven
financial result of €
-1,386 million (2022: € 9,510 million) reflects a
corresponding base effect: In the prior year, the revaluation of BBA
equity interests of € 7.7 billion, as part of the full consolidation,
had significantly increased the BMW Group's financial result, Group
earnings and Group net profit.
The EBT
margin for January to December came in at
11.0% (2022: 16.5%).
Group net profit for the 12-month period amounted to
€
12,165 million (2022: € 18,582 million /
-34.5%). Without the one-time revaluation effect,
Group net profit would have been higher year-on-year, with an EBT
margin on par with the previous year.
Significant increase in Automotive EBIT in YTD December
In the Automotive Segment,full integration of the
operating business of BMW Brilliance Automotive Ltd. (BBA), higher
sales volumes and positive product mix effects boosted revenues for
the 12-month period by 7.0% to €
132,277
million (2022: € 123,602 million / adjusted for
currency translation effects: +11.3%), as did higher revenues from
aftersales business. Negative currency translation effects, primarily
from the Chinese renminbi and the US dollar, impacted revenue growth:
Excluding these headwinds, revenues saw a significant increase of
11.3% for the full year.
Depreciation and amortisation from the purchase price allocation in
connection with the full consolidation of about € 1.4 billion impacted
the segment’s cost of sales for the full year as well as a slight
increase in sales and administrative costs.
The Automotive Segment’s earnings before financial result
(EBIT) for the full year were also significantly higher, at
€
12,981 million (2022: € 10,635 million /
+22.1%). A positive effect came from the full-year
inclusion of the BBA result and from the net effect of volume, mix and
pricing, driven by the higher sales volume and the higher share of top
end as well as BMW M vehicles. However, headwinds resulted from higher
research and development spending and increased manufacturing costs
against 2022 as well as the higher share of electrified vehicles. The
EBIT margin for this period was
9.8% (2022: 8.6%; +1.2 %-pts.).
Excluding depreciation and amortisation for BBA assets from the
purchase price allocation of € 1.4 billion previously referred to, the
EBIT margin was 10.8%.
Thanks to this positive earnings development, the segment’s
free cash flow amounted to €
6,942 million at the end of December (2022: € 11,071
million / -37.3%). The previous year included the
positive one-time effect of around € 5 billion from the full
consolidation of BMW Brilliance.
BMW AG share buyback programme continued
Based on the authorisation issued at the Annual General Meeting in
May 2022, the Board of Management made the decision to buy back shares
worth up to € 2.0 billion. During the initial share repurchase
programme between July 2022 and June 2023, BMW AG repurchased a total
of 22,199,529 shares of common stock for
€ 1,850 million and
1,923,871 shares of preferred stock for € 150 million. This is
equivalent to 3.78% of the current share capital. In accordance with
the Board of Management decision, all shares acquired were retired in
the third quarter of 2023.
The second share buyback programme, worth up to € 2.0 billion, got
underway in July 2023. By the end of 2023, BMW AG had acquired
4,218,363 shares of common stock and 942,892 shares of preferred
stock. A total purchase price (excluding incidental acquisition costs)
of around € 500 million was paid for the shares repurchased in this
first tranche. This corresponds to 0.81% of the current share capital.
The second share buyback programme continued in January 2024 with the
second tranche. As of 12 March 2024, the BMW Group had bought back
7,531,194 shares with a total value of € 734 million and thus holds
1.18% of the current share capital.
The second share buyback programme will be concluded no later than 31
December 2025.
Dividend of € 6.00 proposed
Shareholders will also participate in the success of financial year
2023. Subject to the approval of the Annual General Meeting,
thecompany’s unappropriated profit (according to the German
Commercial Code) of € 3,802 million (2022:
€ 5,481 million / -30.6%), representing a preliminary payout
ratio of 33.7% (2022: 30.6%), will be
distributed to shareholders from BMW AG’s net profit.
Taking into consideration the target range of 30-40% of net profit
for the payout ratio attributable to the shareholders of BMW AG, the
Board of Management and Supervisory Board will propose a
dividend of € 6.00 per share
of common stock (2022: € 8.50) and € 6.02
per share of preferred stock (2022: € 8.52) to the
Annual General Meeting on 15 May. BMW Group employees will once again
participate in the company's success in an appropriate way.
Stable earnings performance in Financial Services Segment
In the difficult competitive landscape of financial year 2023,
BMW Group Financial Services reported slight growth
in its volume of new business with retail customers, which increased
to € 57,333 million (2022: € 55,449 million /
+3.4%). Due to the improved product mix, the average
financing volume per vehicle rose. The number of new contracts
concluded with retail customers reached the previous year’s level of
1,542,514 (2022: 1,545,490 contracts / -0.2%). At the
end of the year, the penetration rate – the percentage of new BMW
Group vehicles leased or financed by the Financial Services Segment –
stood at 38.2% (2022: 41.0% / -2.8 %-pts.).
In the 12-month period, the segment reported pre-tax earnings
of €
2,962 million (2022: € 3,205 million /
-7.6%). This decline in earnings mainly resulted from
higher refinancing costs and the smaller total portfolio of 4,952,318
retail contracts (31 Dec. 2022: 5,210,246 contracts / -5.0%).
BMW Group Financial Services benefited from
continuing high income from the resale of end-of-lease vehicles –
although this was less positive year-on-year and therefore had a
dampening effect on earnings. Prices for used cars are likely to
continue this trend in 2024.
Lower credit risk provisioning compared to the previous year had a
positive effect. In 2022, credit risk provisioning had been heavily
influenced by geopolitical uncertainties and weaker macroeconomic
prospects.
The credit loss ratio for 2023
remained at the low rate of 0.18%.
“The Financial Services segment supports our sales growth with its
financing activities and makes a major contribution to earnings. We
will be integrating our financial services business even more closely
into our sales processes and our ‘customer journey’ going forward.
Digitalisation of our processes will play a key role in this. In all
areas of the company, digitalisation and AI will contribute to greater
efficiency, speed and value creation,” according to CFO
Mertl. “Also in view of the upcoming demographic change,
these two topics are essential for the BMW Group.”
At 17.2%, return on equity in the
Financial Services Segment for financial year 2023 (2022: 17.9% /
-0.7%-pts.) was in line with the adjusted guidance of 16-19%.
Motorcycles Segment steps up deliveries again in centenary year
BMW Motorrad celebrated its centenary in 2023 with two limited
edition models called “100 years”, three new models and four model
updates. In its anniversary year, the segment also achieved a new
all-time high, with a total of 209,066 motorcycles
and scooters delivered to customers (2022: 202,895 units). This
represents a slight increase of 3.0% and confirms expectations for the
financial year.
In the 12-month period, BMW Motorrad revenues rose slightly to
€
3,214 million (2022: € 3,176 million /
+1.2%; adjusted for currency translation effects:
+3.2%). The segment EBIT for January to December was
€
259 million (2022: € 257 million /
+0.8%) and therefore on a par with the previous year.
The EBIT margin stood at 8.1% (2022: 8.1%).
BMW Group steers successful course in final quarter of the
year
The BMW Group achieved dynamic growth in deliveries and a strong
financial performance in the fourth quarter of 2023. It delivered
717,620 premium vehicles to customers (Q4 2022:
651,794 units / +10.1%), including 128,849
fully-electric vehicles (Q4 2022: 87,557 units / +47.1%).
Group revenues saw a solid increase in the fourth
quarter to reach €
42,968 million (2022: € 39,522 million / +8.7%).
Group research and development costs were higher in
the final quarter of the year, at € 2,080 million (Q4
2022: € 1,739 million / +19.7%). The R&D
ratio (according to the German Commercial Code) was stable
at 5.9% (Q4 2022: 5.8% / +0.1 %-pts.). The BMW
Group's capital expenditure totalled €
3,758 million (2022: € 3,111 million / +20.8%).
Group earnings before financial result (EBIT) of
€
4,412 million (2022: € 3,500 million /
+26.1%) were significantly higher year-on-year.
Group earnings before tax (EBT) rose significantly
in the fourth quarter to €
3,682 million (2022: € 3,253 million / +
13.2%). The EBT margin for this
period was 8.6% (2022: 8.2%).
Group net profit for the fourth quarter totalled
€
2,614 million (2022: € 2,175 million / +20.2%).
Automotive Segment revenues posted solid
fourth-quarter growth to reach €
37,283 million (2022: € 34,571 million /
+7.8%; adjusted for currency translation effects: +12.2%).
Earnings before financial result (EBIT) showed solid
growth in the fourth quarter to €
3,171 million (2022: € 2,932 million /
+8.2%). The EBIT margin of
8.5% (2022: 8.5%) remained stable from the previous
year, underlining the strong operating performance of the Automotive
Segment in the final quarter of the year which showed the seasonally
high cost burden.
Solid earnings development in the Automotive Segment resulted in a
free cash flow of €
1,183 million in the fourth quarter (2022: € 1,195
million / -1.0%).
In the Financial Services Segment, the
penetration rate climbed to 39.5%
in the fourth quarter and has therefore maintained its growth
trajectory (2022: 37.1% / +2.4 percentage points).
The segment’s fourth-quarter pre-tax earnings
(EBT) totalled € 511 million (2022:
€ 533 million / -4.1%). This slight decrease was due
to higher refinancing costs and a smaller total portfolio.
Employee numbers higher year-on-year
The BMW Group had 154,950
employees at the end of 2023 (2022: 149,475 /
+3.7%). This slight increase in employee numbers was
mainly in development and IT, as well as in the BMW Group’s global
production network.
Proposed re-election of supervisory board members
With the Annual General Meeting on May 15, 2024, the current mandate
of Supervisory Board members Dr. h.c. Susanne Klatten, Stefan Quandt
and Dr. Vishal Sikka will come to an end. The Supervisory Board will
propose re-electing Dr. h.c. Susanne Klatten, Stefan Quandt and Dr.
Vishal Sikka for another four-year mandate.
* * *
You will receive further information on the Group Financial
Statements 2023 and the outlook for the current financial year at the
BMW Group Annual Conference on 21 March 2024. You can follow the
virtual event from 9:00 am (CET) live in the internet at: https://www.live.bmwgroup.com/en/live-streaming/,
followed by the live streaming of the Annual Conference Q+A with media
from 10:30-11:30 am.
The live streaming of the Investor
relations Q+A with analysts will be streamed from 12:30-01:45 pm at:
https://www.bmwgroup.com/en/investor-relations/annual-conferences.html.
The BMW Group Report 2023 will be published on 21 March at 7.30 a.m.
(CET) at https://www.bmwgroup.com/en/investor-relations/company-reports.html.
The BMW Group – an overview:
Full year
2023 | |
2023 |
2022 |
Change in % |
Deliveries to customers |
|
|
|
|
Automotive1 | units |
2,554,183 | 2,399,632 |
6.4 |
BMW | units | 2,252,793 | 2,100,689 | 7.2 |
MINI | units | 295,358 | 292,922 | 0.8 |
Rolls-Royce | units | 6,032 | 6,021 | 0.2 |
Motorcycles | units |
209,066 | 202,895 |
3.0 |
| |
| |
|
Employees (as of 31 Dec. 2023) | |
154,950 | 149,475 |
3.7 |
EBIT margin Automotive Segment | percent |
9.8% | 8.6% |
14.1 |
EBIT margin Motorcycles Segment | percent |
8.1% | 8.1% |
-0.4 |
EBT margin BMW Group2 | percent |
11.0% | 16.5% |
-33.3 |
| |
| |
|
Revenues | € million |
155,498 | 142,610 |
9.0 |
Automotive | € million | 132,277 | 123,602 | 7.0 |
Motorcycles | € million | 3,214 | 3,176 | 1.2 |
Financial Services | € million | 36,227 | 35,122 | 3.1 |
Other Entities | € million | 11 | 8 | 37.5 |
Eliminations | € million | -16,231 | -19,298 | -15.9 |
| |
| |
|
Profit before financial result
(EBIT) | €
million |
18,482 | 13,999 |
32.0 |
Automotive | € million | 12,981 | 10,635 | 22.1 |
Motorcycles | € million | 259 | 257 | 0.8 |
Financial Services | € million | 3,055 | 3,163 | -3.4 |
Other Entities | € million | -13 | -203 | -93.6 |
Eliminations | € million | 2,200 | 147 | - |
| |
| |
|
Profit before tax (EBT) | € million |
17,096 | 23,509 |
-27.3 |
Automotive | € million | 12,642 | 18,918 | -33.2 |
Motorcycles | € million | 258 | 269 | -4.1 |
Financial Services | € million | 2,962 | 3,205 | -7.6 |
Other Entities | € million | -100 | 995 | - |
Eliminations | € million | 1,334 | 122 | - |
| |
| |
|
Group income taxes | € million |
-4,931 | -4,927 |
0.1 |
Net profit | € million |
12,165 | 18,582 |
-34.5 |
Earnings per share of common
stock | € |
17.67 | 27.31 |
-35.3 |
Earnings per share of preferred
stock3 | € |
17.69 | 27.33 |
-35.3 |
1 Deliveries include the joint venture BMW
Brilliance Automotive Ltd., Shenyang. |
2 Ratio of Group earnings before taxes to Group revenues. |
3 Common/preferred shares. Earnings per share of
preferred stock are calculated by distributing the earnings
required to cover the additional dividend of € 0.02 per
preferred share proportionally over the quarters of the
corresponding financial year. |
The BMW Group – an overview: Q4
2023 | |
Q4 2023 |
Q4 2022 |
Change in % |
Deliveries to customers |
|
|
|
|
Automotive1 | units |
717,620 | 651,794 |
10.1 |
BMW | units | 631,526 | 566,823 | 11.4 |
MINI | units | 84,616 | 83,651 | 1.2 |
Rolls-Royce | units | 1,477 | 1,320 | 11.9 |
Motorcycles | units |
44,349 | 43,562 |
1.8 |
| |
| |
|
Employees (as of 31 Dec. 2023) | |
154,950 | 149,475 |
3.7 |
EBIT margin Automotive Segment | percent |
8.5% | 8.5% |
0.3 |
EBIT margin Motorcycles Segment | percent |
-7.6% | -9.4% |
-19.0 |
EBT margin BMW Group2 | percent |
8.6% | 8.2% |
4.1 |
| |
| |
|
Revenues | € million |
42,968 | 39,522 |
8.7 |
Automotive | € million |
37,283 | 34,571 | 7.8 |
Motorcycles | € million |
643 | 691 | -6.9 |
Financial Services | € million |
9,504 | 9,086 | 4.6 |
Other Entities | € million |
2 | 2 | 0.0 |
Eliminations | € million |
-4,464 | -4,828 | -7.5 |
| |
| |
|
Profit before financial result
(EBIT) | €
million |
4,412 | 3,500 |
26.1 |
Automotive | € million |
3,171 | 2,932 | 8.2 |
Motorcycles | € million |
-49 | -65 | -24.6 |
Financial Services | € million |
606 | 536 | 13.1 |
Other Entities | € million |
0 | -16 | -100.0 |
Eliminations | € million |
684 | 113 | - |
| |
| |
|
Profit before tax (EBT) | € million |
3,682 | 3,253 |
13.2 |
Automotive | € million |
3,031 | 3,009 | 0.7 |
Motorcycles | € million |
-53 | -57 | -7.0 |
Financial Services | € million |
511 | 533 | -4.1 |
Other Entities | € million |
-212 | -263 | -19.4 |
Eliminations | € million |
405 | 31 | - |
| |
| |
|
Group income taxes | € million |
-1,068 | -1,078 |
-0.9 |
Net profit | € million |
2,614 | 2,175 |
20.2 |
Earnings per share of common
stock | € |
3.77 | 3.43 |
9.9 |
Earnings per share of preferred
stock3 | € |
3.78 | 3.44 |
9.9 |
1 Deliveries include the joint venture BMW
Brilliance Automotive Ltd., Shenyang |
2 Ratio of Group earnings before taxes to Group revenues. |
3 Common/preferred shares. Earnings per share of
preferred stock are calculated by distributing the earnings
required to cover the additional dividend of € 0.02 per
preferred share proportionally over the quarters of the
corresponding financial year. |
GLOSSARY – explanatory comments on key performance indicators
Deliveries to customers
A new or used vehicle is recorded as a delivery once it is
handed over to the end user (which also includes leaseholders under
lease contracts with BMW Financial Services). In the US and Canada,
end users also include (1) dealers when they designate a vehicle as a
service loaner or demonstrator vehicle and (2) dealers and other third
parties when they purchase a company vehicle at auction and dealers
when they purchase company vehicles directly from the BMW Group.
Deliveries may be made by BMW AG, one of its international
subsidiaries, a BMW Group retail outlet, or independent third-party
dealers. The vast majority of deliveries – and hence the reporting of
deliveries to the BMW Group – is made by independent third-party
dealers. Retail vehicle deliveries during a given reporting period do
not correlate directly to the revenues that the BMW Group recognises
in respect of that particular reporting period.
EBIT
Profit before financial result. Profit before financial result
comprises revenues less cost of sales, less selling and administrative
expenses and plus/minus net other operating income and expenses.
EBIT margin
Profit/loss before financial result as a percentage of revenues.
EBT
EBIT plus financial result.
Payout ratio
The payout ratio is preliminary. Although the Management Board and
Supervisory Board are proposing a fixed dividend per share to the
general meeting, the number of dividend-entitled shares is expected to
fall even further as a result of the ongoing share buy-back program
between now and the Annual General Meeting. Accordingly, the total
amount paid out to shareholders until May 15 presumably will also change.
PHEV
Plug-in-hybrid electric vehicle.
If you have any questions, please contact:
BMW Group Corporate Communications
Dr Britta Ullrich, Finance Communications
Telephone: +49 89 382-18364
Email: britta.ullrich@bmwgroup.com
Eckhard Wannieck, head of Communications BMW Group, Finance, Sales
Telephone: +49 89 382-24544
Email: eckhard.wannieck@bmwgroup.com
Media website: www.press.bmwgroup.com/deutschland
Email: presse@bmwgroup.com
The BMW Group
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises over 30 production sites
worldwide; the company has a global sales network in more than 140 countries.
In 2023, the BMW Group sold over 2.55 million passenger vehicles and
more than 209,000 motorcycles worldwide. The profit before tax in the
financial year 2023 was € 17.1 billion on revenues amounting to €
155.5 billion. As of 31 December 2023, the BMW Group had a workforce
of 154,950 employees.
The success of the BMW Group has always been based on long-term
thinking and responsible action. The company set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategic direction, from
the supply chain through production to the end of the use phase of all products.
www.bmwgroup.com
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