$BMW (-0,35 %)
#bmw
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Hi folks,
after my last analysis on AT&T was well received, here's a new short presentation today: BMW's figures for Q4 2024! 📊 The final financial figures were published this month. BMW remains one of the world's leading premium carmakers, but 2024 was a challenging year. Let's take a look at the figures.
📌 BMW at a glance
BMW unites the BMW, MINI and Rolls-Royce brands and strategically focuses on electrification, digitalization and sustainability. The "New Class", which will be launched in 2025, is set to bring the technical breakthrough for BMW's electric vehicles.
However, 2024 did not go entirely smoothly: declining margins, higher investments and weaker sales figures are weighing on the balance sheet.
📊 Key financial figures & declines
✔ Turnover: EUR 142.38 billion (-8.4% YoY)
✔ Earnings before taxes (EBT): EUR 10.971 billion (-35.8% YoY)
✔ Automotive EBIT margin: 6.3% (2023: 9.8%) ✔ Automotive free cash flow: EUR 4.852 billion (-30.1% YoY)
🔎 Why have profits slumped so sharply?
📌 Higher investments: BMW is pouring massive amounts of money into building the "New Class" and new electric platforms.
📌 Margin pressure in the automotive business: the EBIT margin in the automotive segment fell from 9.8% to 6.3%, partly due to rising material and production costs.
📌 Weaker sales figures: BMW sold -4% fewer cars than in 2023, with MINI (-17.1%) in particular suffering from the market situation.📌 China weakness & market conditions: BMW sees China as an important but challenging market with weaker growth.
📌 Costs for electromobility: BMW is investing heavily in e-cars, but profit margins are still below those of combustion engines.
👉 That could mean: BMW is investing massively in the future, which will put pressure on profits in the short term.
🚗 Sales development & electromobility
✅ Total deliveries: 2.451 million vehicles (-4.0% YoY)
✅ Share of electric cars: 17.4% (strong increase) ✅ Sales of fully electric vehicles (BEVs): +13.5 % YoY
✅ Target by 2030: >50% fully electric models
Despite a decline in sales, BMW was able to increase BEV sales by 13.5 The New Class from 2025 should ensure a 30% higher range and 50% lower CO₂ emissions in production. However, the market remains highly competitive, especially with Tesla and Chinese manufacturers such as BYD.
🏭 BMW's strategy: investment for the future or margin killer?
BMW has high hopes for the "New Class", which will be launched in 2025 with a completely new electric platform. The aim is to make electric cars more profitable and to catch up with combustion engines in terms of range and efficiency.
The strategy is promising in the long term, but the high capital expenditure remains a challenge in the short term.
🚨 Risks: Can BMW possibly hold its own against Tesla & China?
📌 Competitive pressure: Tesla and BYD are lowering prices, while BMW is still working on the profitability of electric cars.
📌 China uncertainty: BMW has lost market share there, a key market with risks.
📌 Raw material prices & supply chains: Rising costs for battery materials and ongoing logistical challenges.
BMW must prove that the transformation can succeed without further margin losses.
🔮 What could be BMW's goals for the future?
📌 Automotive EBIT margin: 8-10% is expected
📌 Share of electric cars: expected to increase further
📌 CO₂ reduction: Target: >40 million tons less CO₂ in the supply chain & use by 2030
The big question: can the New Class bring profitability back or will the business remain under pressure?
📢 Conclusion - What does BMW make of it now?
BMW is facing a strategic change. The transformation to electromobility and digitalization costs money and puts pressure on margins in the short term. In the long term, BMW has the potential to catch up with the New Class - but the competition is strong and there are risks in the short term due to falling profits and the Chinese market.
📊 What do you think of BMW? Is the share exciting for you or would you rather wait and see?
👍 - BMW interesting in the long term
😐 - Watch for now
👎 - Too many risks
Let me know in the comments!
(1) BMW Group Report 2024 https://www.bmwgroup.com/en/investor-relations/company-reports.html
(2) BMW Investor Presentation https://www.bmwgroup.com/en/investor-relations/company-reports.html
(3) https://www.finanzen.net/amp/preisdruck-bleibt-hoch-bmw-aktie-bmw-mit-umsatz-und-gewinneinbruch-ziele-aber-erreicht-14316693