Munich. The BMW Group continues its profitable course in 2024: parallel to its dynamic BEV ramp-up, the corporate achieved its margin targets. In the primary three months of the yr, the corporate delivered round 83,000 all-electric autos from its BMW, MINI and Rolls-Royce manufacturers and elevated BEV gross sales by round 28 p.c. The BMW model total elevated its gross sales by 2.5%. At the identical time, the EBIT margin within the Automotive phase of 8.8 p.c was throughout the goal vary of 8-10 p.c, in response to the full-year steering. At 11.4 p.c, the EBT margin at Group stage was above the strategic goal of >10 p.c.

After the challenges of the corona pandemic and semiconductor availability, the corporate has constantly delivered quarter by quarter inside its 8-10% strategic EBIT hall since Q1 2022. This has been achieved in parallel to its fast ramp-up of electrical mobility: Over the previous two years, the BMW Group delivered greater than 1.1 million electrified autos to prospects. More than 60 p.c of those had been purely electrical BEV fashions. The BEV share continues to rise steadily, as deliberate.

In the primary quarter of 2023, the EBIT margin of Automotive phase was 12.1%. The EBIT of earlier yr’s first quarter benefited from the decrease buy worth stage of 2022, as inventories with decrease manufacturing prices had been bought. The inflation-related enhance in manufacturing prices impacted the revenue & loss assertion of BMW AG after the second quarter of 2023. The larger price stage has carried by way of into Q1/2024.

“The past nine quarters underline BMW’s continuity and reliability: As planned, we are dynamically expanding the share of electric vehicles while maintaining our high level of profitability. Some call this transformation — for us, it is continuous progress,” mentioned the Chairman of the Board of Management of BMW AG, Oliver Zipse, on Wednesday. “We will remain on this course: We offer our customers the latest innovations and the latest technology — across all vehicle drivetrains. As a result, we continue to generate strong demand with strong products.”

Automotive markets on upward pattern – BMW Group deliveries enhance

With a complete of 594,533 cars delivered to prospects within the first three months, the corporate posted a slight development of 1.1% in comparison with the earlier yr and reaffirmed its main place within the international premium phase.

 

Throughout the three-month interval, the most important automotive markets largely confirmed an upward pattern based mostly on catch-up purchases and elevated gross sales within the mid-price quantity phase. The BMW Group benefited with its younger and extremely engaging product line-up: The BMW model bought 530,933 items within the first quarter – a rise of +2.5% year-on-year. It achieved gross sales development of 2.4% (84,475 items) within the USA and vital development of 10.2% in Europe with 188,863 items delivered. In China, the amount phase developed dynamically in cheaper price ranges, whereas the premium phase declined barely. The BMW model bought 182,998 autos, according to phase improvement (2023: 190,774 items/-4.1%). In Germany, deliveries grew by 4.6% to 49,509 premium autos.

The widespread BMW i4*, in addition to the BMW iX1* and BMW i7*, had been among the many largest development drivers of the 78,682 BMW BEVs delivered. The BMW model’s fully-electric autos noticed notably sturdy development of +40.6%. A complete of 122,582 BMW Group electrified autos, BEVs and PHEVs, had been delivered to prospects, which represents a gross sales share of just about 21%.

Further gross sales momentum is anticipated over the course of the yr from the BMW iX2* and BMW i5*, that are presently ramping up.

Fully-electric fashions elevated to 13.9% of whole gross sales (2023: 11.0%). Once once more, the fashions of higher worth segments additionally proved to be necessary development drivers – with deliveries up 21.6%.

The MINI model is present process a complete mannequin changeover. For the primary time, the brand new MINI Countryman*, was not too long ago launched with a pure-electric drive prepare alongside the acquainted inner combustion engine. This might be adopted by the brand new MINI Cooper*, which is available in mid Q2 with a combustion engine or as a fully-electric car. The all electrical MINI Aceman* not too long ago celebrated its world premiere on the Beijing Motor Show and is the model’s first cross-over mannequin for the premium small automotive phase. These new fashions are anticipated to ship extra momentum from 2^nd half of 2024. MINI delivered 62,075 autos to prospects in Q1 (2023: 68,541 items/-9.4%).

The Rolls-Royce model made a powerful e-mobility debut with the Rolls-Royce Spectre*: In the primary quarter of 2024 alone, the Rolls-Royce luxurious model handed over 579 fully-electric tremendous coupés to their new homeowners; 38% of the entire 1,525 automobiles delivered had been electrified (2023: 1,640 automotive/-7.0%).

 

  Currency-adjusted Group revenues elevated barely

First-quarter Group revenues totalled € 36,614 millionand had been, due to this fact, on par with the earlier yr’s report excessive (2023: € 36,853 million/-0.6%). Group revenues had been buoyed by larger gross sales volumes and a extra beneficial product combine.

Group EBT margin outperforms goal of >10%

 

Between January and March, the BMW Group reported pre-tax earnings (EBT) of € 4,162 mi llion(2023: € 5,129 million/-18.9%). The EBT features a monetary end result of € 108 million (2023: € -246 million), which displays the market improvement in rate of interest and foreign money hedging transactions. The EBT margin for this era was 11.4% (2023: 13.9%) and was above the >10% full yr goal. Group web revenue for the primary quarter totalled € 2,951 million (2023: € 3,662 million/-19.4%).

 

BMW AG continues its share buyback programme

With the authorisation of the Annual General Meeting of BMW AG on 11 May 2022, the corporate initiated the acquisition of shares. Shares bought in programme one have already been cancelled. As of 31 March 2024, BMW AG holds 8,004,314 treasury shares, with a nominal worth of € 8,004,314. Based on this authorisation, BMW AG bought shares equal to five.03% of the share capital as of March 31, 2024.

8.8% Automotive Segment EBIT margin inside full-year goal vary

The Automotive Segment earned revenues of € 30,939 million within the first quarter (2023: € 31,268 million/-1.1%). Excluding foreign money translation headwinds, particularly from the Chinese renminbi and the US greenback, revenues posted year-on-year development of +1.5%. Higher gross sales volumes and extra beneficial product combine results from the higher worth phase and BEV bolstered phase revenues, underscoring the strong working efficiency of the core enterprise. Prices throughout the product vary are anticipated in 2024 to be according to final yr’s stage.

The Ea rnings earlier than monetary end result (EBIT) totalled € 2,710 million for the primary quarter (2023: € 3,777 million/-28.2%). The auto EBIT margin got here in at 8.8% (2023: 12.1%) and was thus throughout the full-year goal vary of 8-10%. EBIT was impacted by larger manufacturing prices. As talked about earlier than, Q1 2023 had nonetheless benefited from the decrease stage of buying costs in 2022. Manufacturing prices elevated beginning with the second quarter of 2023 and has carried by way of into Q1/2024.

Changes in commodity costs accounted for a constructive low three-digit million euro influence in EBIT, whereas foreign money results remained impartial. For the complete yr 2024, the BMW Group anticipates a constructive web stability from foreign money and commodity positions.

Resale outcomes from end-of-lease autos proved to be a headwind towards Q1/2023 but remained constructive. Starting with the second quarter of 2023, the aggressive surroundings has intensified as a consequence of a greater availability of autos. This has led to a gradual softening of the worldwide worth surroundings within the new and used automotive enterprise which has continued into the primary quarter of 2024.

For the complete yr 2024, the corporate expects web influence of quantity, product combine and worth to be barely constructive towards the earlier yr, as communicated.Additional momentum ought to come from the new 5 collection and the higher availability of the 7 collection fashions throughout the first full yr resulting in a stronger product combine.

EBIT of auto phase was additionally impacted by larger promoting & administrative prices,

largely as a consequence of IT initiatives and the rise in personnel prices, which was carried out from the third quarter of 2023.

In line with its strategic plans, the BMW Group is investing extra in its future this yr than ever earlier than. It plans to see report ranges of R&D bills and capital expenditure: The BMW Group is constantly specializing in improvements, environment friendly and low-emission applied sciences, in addition to the additional electrification and digitalisation of the product vary and the corporate.

Based on the power of its present working efficiency, the BMW Group incurred R&D bills of € 1,974 millio n (2023: € 1,554 million/+ 27.0%) within the first quarter, which had been considerably larger than the earlier yr. Spending was primarily centered on additional electrification and digitalisation of the car fleet, in addition to continued improvement of automated driving features. Development expenditure was additionally directed in the direction of upcoming fashions of the NEUE KLASSE in addition to successor fashions such because the BMW X5.

The R&D ratio (in response to the German Commercial Code) elevated to 5.4% (2023: 4.2%). For the full-year, the BMW Group expects a ratio of over 5.0%.

In the primary quarter of the yr, free money circulate of automotive phase was affected by the enhance in working capital as a consequence of larger stock ranges to make sure applicable provide to gross sales markets with lead instances acceptable to prospects.

Capital expenditure of € 1,323 million (excluding captialized improvement prices)was allotted to amenities together with amenities for car initiatives, with a give attention to electrification and digitalisation (2023: € 1,328 million/-0.37%). The capex ratio stood at 3.6% (2023: 3.6%). The firm expects the ratio for the complete yr to be over 6%.

In Q1 2024, whole investments of €2.3bn had been made into future fashions and improvements. Nevertheless, phase Automotive generated € 1,283 million (2023: € 1,981 million/-35.2%) in free money circulate. 

For the complete yr, the BMW Group is concentrating on a free money circulate within the Automotive Segment above € 6 billion, regardless of peak investments in R&D and CAPEX in 2024.

“A long-term strategic approach, coupled with maximum flexibility in our day-to-day business and a clear focus on profitability – that is what defines the BMW Group’s strong operating performance. With this strength, we are in a good position for our company’s far-reaching transition with a diverse range of electrified and digitalized products. This year, it will be more important than ever to maintain our strategic course. The investments needed in the digital and electric future of our company are the highest they have ever been,” mentioned Walter Mertl, member of the Board of Management liable for Finance. “We are confident about the future – because we are building on our highly attractive products and brands and on our financial strength.”

 

Financial providers see sturdy development in new enterprise

 

The financing and leasing enterprise of BMW Group Financial Services continued to expertise dynamic improvement within the first quarter of 2024. New retail enterprise with finish prospects noticed sturdy development: The variety of new contracts climbed by 21.5% to succeed in a complete of 422,056 (2023: 347,298 contracts).

The corresponding whole quantity of recent enterprise from financing and leasing contracts with retail prospects was € 15,620 million (2023: € 12,788 million/+22.1%). The proportion of BMW Group new autos leased or financed by the Financial Services Segment reached 41.8% on the finish of the primary quarter (2023: 36.5%/+5.3 proportion factors).

In the three-month interval, the phase reported pre-tax earnings of € 730 m illion(2023: € 945 million/-22.8%). Higher threat provisioning and decrease revenue from the resale of end-of-lease autos had a dampening impact on earnings towards the earlier yr. As anticipated, costs within the used automotive markets continued to say no. During the reporting interval, the credit score loss ratio remained on the low price of 0.21% throughout your entire mortgage portfolio (2023: 0.13%). BMW Group Financial Services has made ample threat provisions.

BMW bikes with sturdy season begin

 

In the primary quarter, BMW Motorrad delivered 46,434 bikes and scooters to prospects. Overall, BMW Motorrad expects demand for its younger product line-up to stay strong this yr. The new fashions, particularly the F 800 GS, the F 900 GS and the R 1300 GS, are having fun with sturdy demand since their market launch, additional bolstering the phase’s development technique. The EBIT margin of 12.2%(2023: 16.5%) exceeded the guided full-year goal vary of 8-10%.

BMW Group confirms steering

Forecasts predict a slight enhance of three.2% in international financial development for 2024. If the present financial restoration in lots of markets continues, development may doubtlessly be stronger. However, escalation of present conflicts, with a potential enhance in geopolitical tensions, may have a destructive influence.

The BMW Group expects to take part on this development, leveraging its balanced positioning the world over’s main areas.

Given the persevering with demand for its engaging premium autos, the BMW Group confirms its steering for the yr. The firm expects to see slight development in buyer deliveries worldwide in 2024.

Group earnings earlier than tax are forecast to lower barely, as a consequence of larger manufacturing and stuck prices, notably personnel prices and R&D bills, in comparison with the earlier yr. The projected lower in used automotive costs can also be anticipated to contribute to this improvement.

The BMW Group expects an EBIT margin within the Automotive Segment of between 8-10% for the complete yr.

For the Motorcycles Segment, a slight enhance in deliveries is forecast and an EBIT margin throughout the goal vary of 8-10%.

Return on fairness (RoE) within the Financial Services Segment is projected to be between 14 and 17%.

These targets might be achieved with barely larger worker numbers.

This steering assumes that geopolitical and macroeconomic circumstances is not going to deteriorate considerably. Given the various uncertainties surrounding the prevailing dangers and alternatives, the BMW Group’s precise enterprise efficiency might deviate from present expectations.

The BMW Group – an summary: IN Q1 2024		Q1 2024	Q1 2023	Change in %
Deliveries to prospects
Automotive1	items	594,533	588,138	1.1
thereof: BMW	items	530,933	517,957	2.5
MINI	items	62,075	68,541	-9.4
Rolls-Royce	items	1,525	1,640	-7.0
Motorcycles	items	46434	47,935	-3.1
Employees (as of 31 Dec. 2023)		154,950
EBIT margin Automotive Segment	p.c	8.8%	12.1%	-27.5
EBIT margin Motorcycles Segment	p.c	12.2%	16.5%	-26.4
EBT margin BMW Group2	p.c	11.4%	13.9%	-18.0
Revenues	€ million	36,614	36,853	-0.6
thereof: Automotive	€ million	30,939	31,268	-1.1
Motorcycles	€ million	872	933	-6.5
Financial Services	€ million	9,525	8,826	7.9
Other Entities	€ million	4	3	33.3
Eliminations	€ million	-4,726	-4,177	13.1
Profit earlier than monetary end result (EBIT)	€ million	4,054	5,375	-24.6
thereof: Automotive	€ million	2,710	3,777	-28.2
Motorcycles	€ million	106	154	-31.2
Financial Services	€ million	714	958	-25.5
Other Entities	€ million	-5	-4	25.0
Eliminations	€ million	529	490	8.0
Profit earlier than tax (EBT)	€ million	4,162	5,129	-18.9
thereof: Automotive	€ million	2,703	3,828	-29.4
Motorcycles	€ million	106	154	-31.2
Financial Services	€ million	730	945	-22.8
Other Entities	€ million	401	-128	-413.3
Eliminations	€ million	222	330	-32.7
Group revenue taxes	€ million	-1,211	-1,467	-17.5
Net revenue	€ million	2,951	3,662	-19.4
Earnings per share of frequent inventory	€	4.42	5.31	-16.8
Earnings per share of most well-liked inventory3	€	4.42	5.31	-16.8
1 Deliveries embrace the three way partnership BMW Brilliance Automotive Ltd., Shenyang
2 Ratio of Group earnings earlier than taxes to Group revenues.
3 Common/most well-liked shares. Earnings per share of most well-liked inventory are calculated by distributing the earnings required to cowl the extra dividend of € 0.02 per most well-liked share proportionally over the quarters of the corresponding monetary yr.

GLOSSARY – explanatory feedback on key efficiency indicators

 

Deliveries to prospects
A brand new or used car is recorded as a supply as soon as it’s handed over to the tip person (which additionally contains leaseholders below lease contracts with BMW Financial Services). In the US and Canada, finish customers additionally embrace (1) sellers after they designate a car as a service loaner or demonstrator car and (2) sellers and different third events after they buy an organization car at public sale and sellers after they buy firm autos instantly from the BMW Group. Deliveries could also be made by BMW AG, certainly one of its worldwide subsidiaries, a BMW Group retail outlet, or impartial third-party sellers. The overwhelming majority of deliveries – and therefore the reporting of deliveries to the BMW Group – is made by impartial third-party sellers. Retail car deliveries throughout a given reporting interval don’t correlate on to the revenues that the BMW Group recognises in respect of that specific reporting interval.

EBIT

Profit earlier than monetary end result. Profit earlier than monetary end result includes revenues much less price of gross sales, much less promoting and administrative bills and plus/minus web different working revenue and bills.

EBIT margin

Profit/loss earlier than monetary end result as a proportion of revenues.

EBT

EBIT plus monetary end result.

PHEV

Plug-in-hybrid electrical car.

If you may 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 web site: www.press.bmwgroup.com/deutschland

Email: presse@bmwgroup.com