BMW Group declares revenues up by 9% to Euro 1,55,498 million

The BMW Group revenues were primarily driven by higher sales volumes and positive product mix effects.

By Autocar Pro News Desk calendar 15 Mar 2024 Views icon4626 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
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BMW headquarters, Germany

The BMW Group has stated that it has achieved its financial objectives for 2023, and that despite strong competition and volatile conditions, the company successfully maintained its profitable growth. 
Group revenues reported a solid increase in the full year and climbed to Euro 1,55,498 million (2022: Euro 1,42,610 million) an increase of 9% / adjusted for currency translation effects: +13.1%). 
In the period from January to December 2023, the revenues of BMW Brilliance Automotive Ltd. (BBA) were fully included; in the prior year, this was only the case from 11 February 2022 onwards, following full consolidation. This should be factored into the year-on-year comparison.
In addition to full consolidation, revenues were primarily driven by higher sales volumes and positive product mix effects. Higher interest rates and tailwinds from loan financing also contributed to the growth in revenues – which were impacted by currency headwinds from the Chinese renminbi and the US dollar.
A total of 2,554,183 premium vehicles were delivered to customers in the year to the end of December (2022: 2,399,632 units) an increase of 6.4%). The group’s market share at the end of the year was 3.3%.
The Group has stated that high demand for its products was the driver for its continuing strong financial performance: The Group EBT margin came in at 11.0% (2022: 16.5%)
Throughout 2023, the company’s range of fully-electric vehicles was a key growth driver. The BMW Group delivered a total of 3,75,716 fully-electric cars to customers, achieving a share of around 15% of total sales, as planned. Including the Plug-in hybrid electric vehicles delivered, the BMW Group sold a total of 5,65,875 electrified vehicles and thus achieved a sales share of 22%.

In 2023, EBIT climbed to Euro 18,482 million (2022: Euro 13,999 million) an increase of 32%). However, the Group net profit for the 12-month period fell to Euro 12,165 million (2022: Euro 18,582 million) and decrease of 34.5%). The company attributed this to the one-time revaluation effect.

Group research and development costs for the full year rose significantly to € 7,538 million (2022: € 6,624 million / +13.8%). In addition to development expenses for new models, like the new BMW 5 Series, the X3 and X5 (model update), Rolls-Royce Spectre* and future models for the NEUE KLASSE, R&D spending was primarily focused on further electrification and digitalisation of the vehicle portfolio and on automated driving.

“The year 2023 underlined how we are implementing our strategy consistently and successfully. We posted strong growth and substantially increased our percentage of fully-electric vehicles, while improving our operational profitability. A lot of people talk about ‘transformation’. For us, it’s more a question of continuous progress,” said Oliver Zipse, Chairman of the Board of Management of BMW AG.

In the 12-month period, BMW Motorrad also saw a slight revenue rise to Euro 3,214 million (2022: Euro 3,176 million). The segment EBIT for January to December was Euro 259 million (2022: € 257 million). The EBIT margin stood at 8.1% (2022: 8.1%).

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