BMW Group, a leading automaker from Germany, has observed a decrease in its net profit for shareholders in the first quarter. The net profit was recorded at 2.79 billion euros, down from 3.42 billion euros in the last year's same quarter. Earnings per share also showed a 16.8 percent fall, hitting 4.42 euros compared to last year's 5.31 euros.
The pre-tax profit demonstrated a 19 percent fall, standing at 4.16 billion euros, plummeted from the previous year's 5.13 billion euros. Moreover, the profit-before-tax margin reported a 2.5 percentage points drop, accounting for 11.4 percent in the first quarter.
A minuscule decrease of 0.6 percent was marked in Group revenues, which comprised 36.614 billion euros in contrast to the previous year's 36.853 billion euros. Nonetheless, when considered the currency effects, the Group's revenues showed a mild rise of 1.6 percent.
Interestingly, the automobile segment saw an increase in deliveries by 1.1 percent, marking 594,533 units which were in compliance with the expectations. In the fluctuating market scenario, the all-eletric vehicles' sales experienced a substantial boost of 27.9 percent, recording the figures at 82,689 units.
On the other hand, the motorcycles segment bucked the trend with a decrease in deliveries by 3.1 percent, which summed up to 46,434 units.
Looking at the fiscal year 2024, BMW projects a minor decrease in Group's pre-tax profit. The anticipated EBIT margin for the automobile segment in the year 2024 lies between 8 and 10 percent, falling slightly below the prior year's 9.8 percent.
The company also expects a minor increase in its deliveries of BMW, MINI, and Rolls-Royce brand vehicles throughout 2024, owing to a mild increase in demand, the introduction of new models, and their full availability.
To reflect the market trends, the proportion of all-electric vehicles in total deliveries is also predicted to record a significant increase as compared to the projections made in 2023.