BMW shoots 73% its half-year profit, above 13,000 million

It also reduces your benefit in the second quarter

MADRID, 3 Ago. (EUROPA PRESS) -

The BMW automobile group registered a net profit of 13,232 million euros in the first half of the year, which represents an increase of 73.6% in the year-on-year comparison, according to figures presented this Wednesday by the company.

"Our high degree of flexibility and operational performance have proven time and time again to be an effective combination to ensure the success of the BMW Group even in troubled waters. This strength will be important again now, as we see a looming headwind of the economy, in addition to the current shortage of supplies," explained BMW CEO Oliver Zipse.

Thus, the Munich-based consortium had a turnover of 65,912 million euros until June, 19.1% more than what it entered a year earlier, although its operating profit stood at 6,817 million euros, 15.1% less.

On the other hand, the sales of automobiles of the multinational, which includes BMW, Mini and Rolls Royce, fell by 13.4% in the first half, with 1.16 million units. In addition, it registered 107,555 motorcycles, 0.1% less.

BMW doubled deliveries of pure electric vehicles in the period, reaching 75,890 units, 110.3% more. At the same time, sales of electrified vehicles rose 20.4% to 184,468 units. Thus, the share of electrified vehicles in total registrations increased to 15.9%.

Likewise, and despite the volatility, the company shot up its pre-tax profit margin by almost 7 percentage points (24.5%) so far this year, mainly due to the revaluation of the shares of the 'joint venture' Chinese BMW Brilliance Automotive (BBA). This revaluation increased the financial result by 7,700 million euros.

In the second quarter, the German company posted a net profit of 3,047 million euros, which means a 36.4% reduction in profits of 4,790 million euros from a year earlier.

This is due, on the one hand, to the one-time gain of €1 billion in the second quarter of 2021 from the partial reversal of the provision for EU antitrust proceedings. On the other hand, to the problems arising from the full consolidation of BBA in the second quarter that affected the group's results by around 1,100 million euros.

The German consortium entered 34,770 million euros between April and June, 21.6% more, while its quarterly operating profit fell by 31.5%, to 3,426 million euros. In the past three months, BMW delivered 563,187 cars from its three firms, 19.8% less, and 60,152 motorcycles, 7.5% less.

Looking ahead to the remainder of the year, although the company expects sales volumes in the second half to be "solidly higher" than those of the same period of the previous year, the forecast contemplates that the loss of volume in this first semester. Consequently, deliveries for the year are expected to be slightly lower than the previous year.

"Starting in 2025, we will take the next big leap with the Neue Klasse that defines what the BMW Group stands for in the future. At the beginning, we are planning a compact sedan in the 3 Series segment and a sporty SUV. By the end of the decade, the Neue Klasse is expected to account for more than half of our sales," said Zipse.