Munich. The BMW Group has revised its full-year outlook for 2023, anticipating a positive business performance in the second half of the year. This is based on the ongoing strength of the order bank and an expected increase in the availability of premium vehicles.
Here are the revised financial indicators provided by the BMW Group:
- Expected solid growth in automotive segment deliveries to customers compared to the previous year (previously: slight growth).
- The anticipated EBIT margin for the full year 2023 in the automotive segment is within the range of 9% to 10.5% (previously: 8% to 10%).
- The Return on Capital Employed (RoCE) in the automotive segment is projected to be between 18% and 22% (previously: 15% to 20%).
- The Return on Equity (RoE) in the financial services segment is expected to be between 16% and 19% (previously: 14% to 17%).
In addition, the BMW Group now expects the free cash flow in the automotive segment to exceed €6 billion for the full year 2023. This takes into account higher investments in the transition to electromobility and increased inventories to ensure a sufficient supply of vehicles in the markets.
Furthermore, the company foresees higher expenses for suppliers due to inflation, and the supply chain is expected to remain challenging in the second half of the year.
The new outlook is based on the preliminary financial results for the first half of 2023 and the second quarter of 2023:
- During the first half of the year, the BMW Group achieved a Group EBT margin of 12.6%, and 11.3% in Q2 2023.
- The automotive segment delivered sales of 1.2 million units in the first half of the year, representing a growth of 4.7% compared to the same period in 2022.
- In the first half of the year, the automotive segment achieved an EBIT margin of 10.6%, with 9.2% in Q2 2023. This was driven by improved sales volume, a favorable product mix, and positive pricing, despite adverse effects from foreign currency, higher material costs, and warranty expenses.
- The financial services segment generated earnings before tax of €1,704 million in the first six months of 2023, with €759 million in Q2 2023.
- The solid profitability resulted in a free cash flow of €3.1 billion in the automotive segment during the first half of the year, with a contribution of €1.2 billion in Q2. The increase in inventory for building the product supply pipeline and higher material and raw material costs posed some challenges.
The full quarterly results and the outlook statement will be published in the 2023 half-year report on August 3, 2023. For the definitions of the financial indicators mentioned above, please refer to pages 335 to 340 of the BMW Group Report 2022.
An ad hoc announcement has also been published as required by law.
If you have any questions, please contact:
BMW Group Corporate Communications
Dr. Britta Ullrich, Communications Finance
Telephone: +49 89 382-18364
E-mail: britta.ullrich@bmwgroup.com
Eckhard Wannieck, Head of Communications Corporate, Finance, Sales
Telephone: +49 89 382-24544
Email: eckhard.wannieck@bmwgroup.com
Media website: www.press.bmwgroup.com/global
Email: presse@bmwgroup.com