BMW, the luxury car manufacturer, saw an 8.4% decrease in revenue during 2024, reaching 142.38 billion euros. This performance comes amidst an increasingly tense global trade environment, particularly with potential tariff increases impacting the automotive industry.
Automotive revenue specifically dropped by 5.6%, totaling 124.92 billion euros. While the automotive segment experienced a downturn, BMW’s motorcycle division saw a slight growth, with revenue increasing by 0.2% to 3.22 billion euros.
In terms of sales and production, BMW faced some challenges. Automotive deliveries decreased by 2.3% to 2.2 million units. Within its portfolio, MINI saw a significant decline of 17.1% to 240,000 deliveries, while Rolls Royce experienced a 5.3% reduction, with 5,712 units delivered. Production figures mirrored this trend, with an overall decline of 4.8% to 2.23 million vehicles. MINI production decreased by 11.5% to 0.28 million units, and Rolls Royce production was down 4.1% to 5,924 units.
The carmaker’s profitability also took a hit. Net profit declined by 36.9% to 7.68 billion euros. The EBIT margin for the automotive segment decreased from 9.8% to 6.3%. The motorcycle segment’s EBIT margin also dropped, falling to 6.1% from 8.1%. Earnings per share (EPS) were 11.62 euros, a decrease from 17.67 euros reported the previous year.
As of December 31, 2024, BMW held 19.29 billion euros in cash and equivalents. In response to the financial pressures, the company reduced its dividend to 4.30 euros, down from the 6 euros paid out for 2023.
BMW chair Oliver Zipse indicated to Reuters that the company anticipates trade tariffs to cost them 1 billion euros (approximately $1.09 billion) during the current year. Looking ahead, BMW expects its earnings margin for cars to be in the range of 5-7% in 2025, below a consensus estimate of 7.3%.
For 2024, BMW proposed an increased payout ratio of 36.7% and a dividend of 4.32 euros per preferred share, which is down from 6.02 euros the previous year. Furthermore, BMW reduced its 2024 margin outlook to 6%-7%, revising it downward from the initially projected 8-10% in September. The company pointed to weaker sales in China and issues concerning the Integrated Braking System (IBS) supplied by a third-party vendor as contributing factors.
