BMW Q1 Profit Soars; Maintains FY22 Outlook

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German luxury carmaker BMW AG reported Thursday significantly higher profit in its first quarter driven by high demand for its premium vehicles as well as the full consolidation of China joint venture. Further, the company maintained its fiscal 2022 guidance, despite high volatility.

As announced earlier, China joint venture BMW Brilliance Automotive Ltd or BBA has been consolidated fully since February 11, 2022, following the increase in shares held by BMW to 75 percent from 50 percent.

For the year, the company projects significant growth in Group earnings before tax with the effects of the full consolidation, despite the negative impacts from production adjustments.

Deliveries in the Automotive Segment are forecast to be flat with last year. The EBIT margin is still expected to be within the range of 7-9 percent.

Further, the company said it aims to have more than two million fully-electric vehicles on the roads by 2025. In 2022, BMW Group will have 15 fully-electric models in production, and is on track to deliver at least 10 percent of its annual sales volume in fully-electric vehicles.

For the first quarter, Group net profit surged 256 percent to 10.19 billion euros from last year's 2.83 billion euros. Earnings per share grew to 15.33 euros from 4.26 euros a year ago.

Group earnings before tax or EBT increased 225.4 percent to 12.23 billion euros. EBT margin was 39.3 percent in the first quarter, significantly higher than 14 percent a year ago. Without the consolidation effects, margin was 18.4 percent.

Automotive segment's EBIT grew 5.9 percent, but margin declined to 8.9 percent from last year's 9.8 percent. Excluding the consolidation effects, the EBIT margin amounts to 13.2 percent.

First-quarter Group revenues climbed 16.3 percent to 31.14 billion euros from last year's 26.78 billion euros.

Automotive Segment revenues grew 14.4 percent from last year to 26.73 billion euros.

Total BMW, MINI and Rolls-Royce deliveries declined 6.2 percent to 596,907 units mainly due to to limited availability of components and wide-scale lockdowns in China that hurt BMW brand sales.

BMW brand delivered a total of 519,796 vehicles, a decrease of 7.3 percent. However, premium brands MINI and Rolls-Royce recorded higher sales

In the Americas, deliveries grew 2.9 percent with 3.7 percent rise in the US. The European markets, on the other hand, saw a moderate decrease of 7.8 percent.

Motorcycles deliveries grew 11.3 percent.

Sales of electrified vehicles increased significantly by 28 percent to 89,669 units. As planned, sales of pure electric vehicles more than doubled to 35,289 units.

In Germany, BMW shares were trading at 79.98 euros, up 0.64 percent.

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