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BMW Group achieved 49% higher net profit in 2022 than in 2021 despite a 25% increase in its headcount and almost 5% fewer vehicle deliveries compared to 2021.

17 Mar 2023 | International News : Germany

BMW Group reported strong earnings despite facing headwinds such as supply chain issues, the war in Ukraine, and the semiconductor shortage.

The Group is the parent company of carmakers BMW, MINI and Rolls-Royce Motor Cars. It also has a motorcycle division, BMW Motorrad.

The super-luxury segment remained robust, as evidenced by Rolls-Royce Motor Cars delivering more than 6,000 cars in 2022
Total revenues rose by 28% from S$159.2 billion (111.239 billion euros) to S$204.1 billion (142.610 billion euros). Profit before tax (EBT) jumped 46.4% from nearly S$23 billion (16.06 billion euros) to S$33.6 billion (23.509 billion euros).

More significantly, BMW Group's 2022 net profit compared to 2021 was up by 49.1% or S$17.8 billion (12.463 billion euros) to S$26.6 billion (18.582 billion euros).

The Group recorded these figures despite the BMW and MINI brands delivering fewer vehicles than the previous year. BMW delivered 2,100,689 vehicles, which was 5.1% lower compared to 2021. MINI deliveries dropped by 3.1% from 302,138 to 292,922.

BMW Group's car deliveries were lower as a whole, but BMW Motorrad delivered more motorcycles in 2022 than in 2021
Rolls-Royce Motors Cars bucked this trend, though, with deliveries rising from 5,586 units in 2021 to 6,021 units in 2022. BMW Motorrad also delivered 202,895 motorcycles last year compared to 194,261 the year before.

BMW Group also posted strong financials despite increasing its workforce by 25.7%, with headcount rising from 118,909 in 2021 to 149,475 in 2022.

Dr Nicolas Peter, Member of the Board of Management of BMW AG, Finance, also announced that the Group sold 215,752 battery electric vehicles (BEVs) from BMW and MINI in 2022, more than twice as many as in 2021.

BMW says strong demand for models like the i7 (above) should help its BEVs make up 15% of total sales in 2023
He also mentioned that BEVs are expected to make up 15% of the Group's total sales volume this year, before rising to 20% in 2024. BMW's goal is to have half of its sales consist of BEVs before 2030.

With regard to non-financial goals, BMW Group reduced its CO2 fleet emissions to 105 grams, outperforming its target by 22.5 grams.

Dr Peter cautioned, however, that BMW would continue to face significant obstacles this year, citing factors such as supply chain bottlenecks that could disrupt production, and a 'difficult' raw material supply situation.

The X1 and electric iX1 is expected to continue to drive BMW's sales this year, despite headwinds
Logistical costs are also still impacting earnings. But the semiconductor shortage, should be 'easing'.

For 2023, BMW foresees demand in premium markets to remain stable. Demand will soften in Europe, and some recovery is expected in China from the second quarter onwards. Overall, the Group stated that its order books were 'well-filled'.

Helping fill the order books are models that include the new X1 (read our review here) and iX1. BMW Group anticipates growth in the mid-double-digit range for its top-end products and high-margin products. BMW expects a slight increase in vehicle deliveries this year.

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