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

Spencer Platt | Getty Photographs Information | Getty Photographs

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

In a preview of results that it’ll 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% yr over yr to 111.24 billion euros, or about $122.4 billion.

Each revenue and income notched information for the corporate.

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

About 13% of these 2021 deliveries had been “electrified” autos, which means plug-in hybrids or totally electrical fashions. Gross sales of BMW Group’s electrified autos had been simply over 328,000 in 2021, up 70% from the corporate’s 2020 consequence, however nonetheless nicely in need of EV chief Tesla’s 936,000 2021 whole.

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

The EV push is coming at a price. BMW’s analysis and improvement spending, a lot of which was targeted on new EV architectures and elements, rose 10.7% to six.3 billion euros. However 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 car traces amid the chip scarcity, a superb signal for buyers hoping that the corporate will be capable of comfortably finance its transition to zero-emissions autos. The working revenue margin in BMW’s automotive phase, a extensively 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 had been in a position to mix the underlying transformation and the most important funding it entails with sturdy operational success in a really risky atmosphere 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 superb place and optimistic concerning the future.”

BMW plans to share a few of that hefty revenue with its shareholders. The corporate stated that it’ll 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 announced on Thursday that it has agreed to buy Alpina, the model of a longtime builder of higher-performance variations of BMW automobiles, a few of which have been provided once in a while by way of BMW’s personal dealership community. The Alpina model will ultimately turn out to be an in-house trim line for BMW, just 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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