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Bayerische Motoren Werke AG (BMW) has improved its competitive standing and profitability in the first quarter of 2022 as the group reported significant growth fueled by high demand for its premium vehicles.
The company's revenue for the quarter amounted to €31,142 million, growing 16.3% YoY. The net profit of the company surged a massive 259.5% to €10,185 million, resulting in an EPS of €15.33 per share against €4.26 last year.
Its motorcycle segment saw improved sales as volume grew 11.3% and revenues grew 6.1%. Sales of Rolls Royce cars surged 17.7% but that of BMW cars fell by 7.3%. However, profits from the Automotives segment jumped 275.4%, and that of the Motorcycle segment declined 19.3%.
“The strength and resilience of the BMW Group are particularly evident in this challenging environment: With a high level of flexibility, operational excellence, and the tremendous commitment of our team, we are steering the company towards success, today and in the future,” said Oliver Zipse, Chairman of the Board of Management of BMW AG.
These financials also showcase all the positive effects arising from the full consolidation of its Chinese Joint Venture, BMW Brilliance Automotive Ltd. (BBA). Looking ahead, the company plans to have 2 million fully electrified vehicles on the road by 2025. This year already, the company will have 15 fully electric models in production and is on track to deliver at least 10% of its annual sales volume in fully electric vehicles.
The stock of BMW witnessed a steep 24% decline in early March as it touched a low of €67.58 per share, a level it hadn't reached since February 2021. The stock has been consolidating in a range since late March. Its stock surged 1.32% after the announcement of its result and closed at €79.06 per share.
Article by Aman Agarwal.
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