BMW Group ended the financial year 2021 with all-time highs for Group revenues, earnings and net profit – all of which were “significantly higher” the company said today in Munich. Deliveries were up 8.4%, to 2,521,514 units, of which 13% were electrified vehicles (328,314 units, +70.4% YOY). Group revenues rose to.€111,239 million (prev. yr.: €98,990 million, +12.4%). Group net profit reached a new all-time high of €12,463 million (prev. yr.: €3,857 million, +223.1%).
With a higher percentage of high-revenue vehicles, the BMW Group benefited from positive product-mix effects and improved pricing, both for the sale of new vehicles and the resale of end-of-lease vehicles. Lower year-on-year employee numbers and modernization of the pension scheme for employees in Germany resulted in a lower cost of sales in the high three-digit million-euro range. However, this was partially offset by higher expenses for performance-based remuneration in the cost of sales. Further headwinds resulted from higher raw material prices.
The Automotive Segment benefited from better pricing and an improved product mix in 2021, as demand remained high. Due to the global semiconductor shortage, fewer new vehicles were available on the market and high-revenue models were preferred. Positive residual value development for end-of-lease vehicles – especially in the US and the UK – also contributed to higher segment income. Increased business from new parts and accessories also lifted revenues. As a result, segment revenues were significantly higher, at €95,476 million (prev. yr.: €80,853 million, +18.1%). The total earnings before tax for financial year 2021 of €11,805 million were significantly higher than the figure for the previous year (2020: €2,722 million, +333.7%).
“Higher research and development spending is an indication that the BMW Group is consistently driving forward with its transformation. Total costs for research and development in accordance with IFRS significantly increased year-on-year to €6,299 million (prev. yr.: €5,689 million, +10.7%). Higher revenues meant the R&D ratio, according to the German Commercial Code, of 6.2% remained on a par with the previous year (prev. yr.: 6.3%). In 2021, investments were channeled into new vehicle architectures and toolkits in connection with the electro-offensive. Additional expenses came from the development of digital products and automated driving,” said a release that quoted Oliver Zipse, Chairman of the Board of Management of BMW AG.
Capital expenditure for property, plant and equipment and other intangible assets amounted to €5,012 million in 2021 (2020: €3,922 million, +27.8%). The major expansion of the electrified product line-up and upcoming series launches led to corresponding capital expenditure at the plants involved. The capex ratio of 4.5% was within the target range of <5% as planned.
BMW Motorrad delivered 194,261 units (prev. yr.: 169,272, +14.8%) to customers in 2021. The segment posted revenues of €2,748 million (prev. yr.: €2,284 million, +20.3%) and an EBIT of €227 million (prev. yr.: €103 million, +120.4%). The EBIT margin came in at 8.3% (prev. yr.: 4.5%, +3.8 percentage points) and is therefore within the guidance corridor of 8-10%. The main drivers were positive product-mix effects and sales growth. The significant increase in return on capital employed to 35.9% (prev. yr.: 15.0%, +20.9 percentage points) mainly reflects the improvement in EBIT.
Dividend to Increase Proportionally
“Shareholders should also participate to an appropriate extent in the success of the company. Based on the annual financial statements of BMW AG, the unappropriated profit (according to the German Commercial Code) for distribution to shareholders amounts to €3,827 million (prev. yr.: €1,253 million, +205.4%). While maintaining the target range of 30-40% for the payout ratio, the Board of Management and Supervisory Board will propose a dividend of €5.80 per share of common stock (prev. yr.: €1.90) and €5.82 per share of preferred stock (prev. yr.: €1.92) to the Annual General Meeting on 11 May. The payout ratio amounts to 30.7% (prev. yr.: 32.5%).”
Share Repurchase Authorization at Annual Meeting
“The BMW Group has a healthy balance sheet and a very solid financing structure. It also has the potential to generate sustainably high free cash flow. One reason for this is the recent full consolidation of the Chinese joint venture BMW Brilliance Automotive Ltd. in the BMW Group Financial Statements. To retain the option of optimizing the company’s capital structure, the Board of Management and the Supervisory Board will propose to the Annual General Meeting that the Board of Management be authorized to purchase and retire treasury shares. In accordance with the legal framework, the Board of Management would be authorized for a period of five years to purchase shares in the company worth up to 10% of the total share capital and to retire or to use them.
BMW Group Posts Record Revenues, Earnings, Profits for 2021
BMW Group ended the financial year 2021 with all-time highs for Group revenues, earnings and net profit – all of which were “significantly higher” the company said today in Munich. Deliveries were up 8.4%, to 2,521,514 units, of which 13% were electrified vehicles (328,314 units, +70.4% YOY). Group revenues rose to.€111,239 million (prev. yr.: €98,990 million, +12.4%). Group net profit reached a new all-time high of €12,463 million (prev. yr.: €3,857 million, +223.1%).
With a higher percentage of high-revenue vehicles, the BMW Group benefited from positive product-mix effects and improved pricing, both for the sale of new vehicles and the resale of end-of-lease vehicles. Lower year-on-year employee numbers and modernization of the pension scheme for employees in Germany resulted in a lower cost of sales in the high three-digit million-euro range. However, this was partially offset by higher expenses for performance-based remuneration in the cost of sales. Further headwinds resulted from higher raw material prices.
The Automotive Segment benefited from better pricing and an improved product mix in 2021, as demand remained high. Due to the global semiconductor shortage, fewer new vehicles were available on the market and high-revenue models were preferred. Positive residual value development for end-of-lease vehicles – especially in the US and the UK – also contributed to higher segment income. Increased business from new parts and accessories also lifted revenues. As a result, segment revenues were significantly higher, at €95,476 million (prev. yr.: €80,853 million, +18.1%). The total earnings before tax for financial year 2021 of €11,805 million were significantly higher than the figure for the previous year (2020: €2,722 million, +333.7%).
“Higher research and development spending is an indication that the BMW Group is consistently driving forward with its transformation. Total costs for research and development in accordance with IFRS significantly increased year-on-year to €6,299 million (prev. yr.: €5,689 million, +10.7%). Higher revenues meant the R&D ratio, according to the German Commercial Code, of 6.2% remained on a par with the previous year (prev. yr.: 6.3%). In 2021, investments were channeled into new vehicle architectures and toolkits in connection with the electro-offensive. Additional expenses came from the development of digital products and automated driving,” said a release that quoted Oliver Zipse, Chairman of the Board of Management of BMW AG.
Capital expenditure for property, plant and equipment and other intangible assets amounted to €5,012 million in 2021 (2020: €3,922 million, +27.8%). The major expansion of the electrified product line-up and upcoming series launches led to corresponding capital expenditure at the plants involved. The capex ratio of 4.5% was within the target range of <5% as planned.
BMW Motorrad delivered 194,261 units (prev. yr.: 169,272, +14.8%) to customers in 2021. The segment posted revenues of €2,748 million (prev. yr.: €2,284 million, +20.3%) and an EBIT of €227 million (prev. yr.: €103 million, +120.4%). The EBIT margin came in at 8.3% (prev. yr.: 4.5%, +3.8 percentage points) and is therefore within the guidance corridor of 8-10%. The main drivers were positive product-mix effects and sales growth. The significant increase in return on capital employed to 35.9% (prev. yr.: 15.0%, +20.9 percentage points) mainly reflects the improvement in EBIT.
Dividend to Increase Proportionally
“Shareholders should also participate to an appropriate extent in the success of the company. Based on the annual financial statements of BMW AG, the unappropriated profit (according to the German Commercial Code) for distribution to shareholders amounts to €3,827 million (prev. yr.: €1,253 million, +205.4%). While maintaining the target range of 30-40% for the payout ratio, the Board of Management and Supervisory Board will propose a dividend of €5.80 per share of common stock (prev. yr.: €1.90) and €5.82 per share of preferred stock (prev. yr.: €1.92) to the Annual General Meeting on 11 May. The payout ratio amounts to 30.7% (prev. yr.: 32.5%).”
Share Repurchase Authorization at Annual Meeting
“The BMW Group has a healthy balance sheet and a very solid financing structure. It also has the potential to generate sustainably high free cash flow. One reason for this is the recent full consolidation of the Chinese joint venture BMW Brilliance Automotive Ltd. in the BMW Group Financial Statements. To retain the option of optimizing the company’s capital structure, the Board of Management and the Supervisory Board will propose to the Annual General Meeting that the Board of Management be authorized to purchase and retire treasury shares. In accordance with the legal framework, the Board of Management would be authorized for a period of five years to purchase shares in the company worth up to 10% of the total share capital and to retire or to use them.