Munich. In a challenging environment, the BMW Group ended the financial year 2021 strong and fulfilled its targets as forecast. The premium manufacturer was able to significantly increase both Group earnings and net profit compared to the previous year, having already raised its guidance in May and September. Valuation effects and reversals contributed to this improvement. The BMW Group also met high expectations for its non-financial targets: For example, in financial year 2021, the percentage of total deliveries from electrified vehicles increased significantly to 13%. As well, the CO2 emissions value of the BMW Group’s EU new vehicle fleet was reduced to 115.9 g/km (WLTP).
The company has stepped up electrification of its product range, while considerably enhancing its profitability.
“The past year provides clear evidence that successful transformation bears fruit. The strong earnings we achieved in financial year 2021 are the result of our consistent strategy – with the right products at the right time,” said Oliver Zipse, Chairman of the Board of Management of BMW AG, on Thursday in Munich. “This success is also thanks to our associates, and I would especially like to thank them for their hard work and their passion. Together, we are demonstrating that bold transformation and economic success go hand in hand at BMW.”
High Group earnings for financial year 2021
The BMW Group ended the financial year 2021 with all-time highs for Group revenues, earnings and net profit – all of which were significantly higher.
Deliveries were up 8.4%, to 2,521,514 units, of which 13% were electrified vehicles (328,314 units/ +70.4% YOY).
Group revenues climbed to € 111,239 million (prev. yr.: € 98,990 million/ +12.4%). 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 modernisation 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.
E-mobility and digitalisation drive R&D costs
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 increased significantly 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 channelled into new vehicle architectures and toolkits in connection with the electro-offensive. Additional expenses came from the development of digital products and automated driving.
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
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