- BMW earned 18.582 billion euros, a more than positive figure for the German group.
- A large part of the profits are based on the excellent performance of its most famous subsidiaries: Rolls Royce and Mini, which increased their turnover by 28 percent.
- Complicated months lie ahead due to the threat of a global recession and the ongoing inflationary problems. Buy or sell BMW shares?
BMW, the German giant, ended last year with net profits of €18.58 billion, up nearly 50 percent from €12.46 billion in 2021, according to figures released last week by BMW.
The group emphasized that they achieved the proposed objectives during 2022 in difficult economic circumstances, in addition to pointing out that these numbers are the result of the improvement of values and the positive consequences of the union of products, and the full consolidation of the Chinese joint venture company, BMW Brilliance, located in the city of Shenyang.
Oliver Zipse, Chairman of the Board of Management of BMW, explained that two key factors combined for its success last year: a strong and passionate team sacrifice by its employees worldwide and items that give the right response to an extremely challenging context.
As a result, BMW ended the 2022 financial year with revenues of 142.612 billion euros, which is 28 percent more than the 111.240 billion euros earned during 2021.
BMW and an attractive 2022
The automaker’s net operating profit stood at €14 billion last year, a growth of 4.5 percent from €13.4 billion in the previous year.
In this connection, ebit in BMW’s Cars division was close to 10.637 billion euros, up 7.9 percent year-on-year.
In the Motorcycles division, there was an increase of more than 13 percent to 257 million euros.
The operating margin of the automotive division thus closed the past year at 8.5 percent (compared with 10.4 percent in 2021), while that of the motorcycle division was 8 percent, down from 8.4 percent in the previous year.
Overall turnover from car sales, meanwhile, declined by almost 5 percent at the close of 2022, to 2.4 million units, of which 2.1 million are from the parent brand, 292,923 units to Mini and 6,020 to Rolls Royce.
In addition, the German group registered 202,896 motorcycles, a growth of 4.5 percent.
Dividend distribution
The multinational is proposing to the Annual General Meeting of Shareholders that a dividend of 8.6 euros per ordinary share (5.7 euros per share in the previous year) and 8.5 euros per preferred share (5.8 euros in the previous year) be paid out of the profit for 2022.
Despite this growth in results, the German company will present this month the annual report corresponding to the last fiscal year with forecasts for 2023.
What this report will say is not yet clear. If it talks about good prospects for the 12 months between June 2023 and May 2024, the group’s shares should grow, so it would not be a bad idea to buy some shares.
If it talks about the difficulties of the recession, in the short term BMW shares are not going to have a good time at all.
BMW Subsidiaries
BMW Group is made up of several subsidiaries that have played an important role in its success over the years.
One of the most important subsidiaries of BMW Group is Rolls-Royce Motor Cars, which joined the holding company in 1998.
Rolls-Royce is a luxury automobile manufacturer based in the United Kingdom and is known for its handcrafted vehicles that embody the ultimate in luxury and prestige. Since joining the BMW Group, Rolls-Royce has continued to produce some of the world’s most luxurious automobiles, with the Phantom, Ghost and Wraith among its most popular offerings.
Another important BMW Group subsidiary is BMW Motorrad, which is the group’s motorcycle division.
BMW Motorrad has been part of the BMW Group since 1923 and has become one of the world’s leading motorcycle manufacturers, with a reputation for quality, performance and innovation.
BMW Motorrad’s most popular models include the R 1200 GS, the S 1000 RR and the F 800 GS Adventure.
Mini is another subsidiary that is part of the BMW Group. The British brand, which was acquired by BMW in 2000, is known for its iconic design and compact size. Since joining the group, Mini has continued to innovate and expand its product line, with the introduction of the Mini Cooper, Mini Clubman and Mini Countryman models.
BMW-Group also owns a 50 percent stake in the BMW Brilliance Automotive joint venture, which was established in 2003.
This company is based in China and produces BMW vehicles for that market.
BMW-Brilliance Automotive has been instrumental in helping BMW establish a strong presence in the Asian giant, which is one of the world’s largest automotive markets.
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