The BMW Group stated on Thursday that its revenue for the fourth quarter of fiscal 2023 increased by 8% to €42.9 billion, while for the entire year, it logged a total profit of €155 billion, 9% higher than in 2022.
In the three months to December 31, 2023, the car maker’s net profit rose 20% to €2.6 billion or €3.77 per share of common stock, while for the 12 months, the company’s net profit decreased by 34.5% to €12 billion or €17.67 per share of common stock.
BMW Group has reported a positive outlook for 2024, building on its successful performance in 2023, with an EBIT margin of 8-10% for the upcoming year and capital expenditures expected to peak, aligning with its strategic plans.
“The more challenging the framework conditions become, the more important it is to implement a consistent strategy. As a result, strong products and a high degree of responsiveness will remain our key success factors in 2024. This will continue to make us a reliable partner for customers, investors, and stakeholders in the future,” Oliver Zipse, Chairman of the Board of Management of BMW AG, said.
BMW sees 2024 automotive margin in line with previous year
BMW sees its 2024 automotive margin in line with last year as the German premium carmaker expects research and development (R&D) costs and capital expenditures to peak this year, it said in the annual report on Thursday.
The company expects the earnings before interest and taxes (EBIT) margin in its core automotive division to fall in a range of 8-10% this year, versus the 9.8% reported in 2023.
This comes after the Munich-based group’s 2023 margins fell short of expectations on higher costs and it had to slash dividends as consolidation of its Chinese joint venture weighed on the bottom line.