BMW's market cap, dividends, sales and earnings in 2020-2021

  •   DEHOUI Lionel

Founded in 1916 and based in Munich, Bavaria, BMW is a German company specialising in car manufacturing. It markets vehicles through its BMW, Mini and Rolls-Royce brands. In 2020, the group suffered the impact of the Covid-19 health crisis. This had a negative impact on the results for that year. However, in the first quarters of the 2021 financial year, the manufacturer has performed well.

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BMW's market cap, dividends, sales and earnings in 2020-2021
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Overall point of the group's activity in 2020

In 2020, BMW's business took place in a difficult context marked by the Covid-19 pandemic. It was heavily affected by this health crisis. The pandemic forced the Group to close its plants in Europe and South Africa during the year.

For the full year 2020, the automotive division delivered a total of 2,325,179 vehicles, a drop of 8.4%. During the year, production was lower than sales. In fact, the manufacturer designed 2,255,637 cars. By limiting production, the company was able to clear some of its stocks.

In the twelve months of 2020, BMW achieved annual sales of 98.99 billion euros, compared to 104.21 billion euros in 2019. The automotive division contributed 80.85 billion euros to this figure in 2020. The group's Ebit amounted to €4.8 billion, compared to €7.4 billion a year earlier. 7.4 billion a year earlier, a year-on-year decline of 34.8%.

The automotive division's Ebit came to €2.16 billion in 2020, compared to €4.5 billion in 2019, a decline of 51.9%. On the other hand, the German group recorded a profit before taxes and duties (EBT) of 5.2 billion euros for the whole of this year. 2.7 billion of this amount was generated by the automotive sector.

 

Group business review in the first quarter of 2021

After the impact of the coronavirus epidemic suffered in 2020, BMW has noted a sustained recovery in its business at the start of the 2021 financial year. The results unveiled by the group in the first quarter exceeded all expectations. In particular, it recorded a record level of sales during this period.

Indeed, between January and March 2021, the Munich-based manufacturer delivered 636,606 vehicles. This represents an increase of 33.4% compared to the same period the previous year. This number represents the best first quarter performance in the company's history.

In addition, during Q1-2021, the company delivered 70,207 electrified vehicles, double the number recorded a year earlier. In the first three months of 2021, BMW generated a pre-tax profit of EUR 3 757 billion. This figure came in well above the market's expectations of €1.8 billion.

As a reminder, in Q1-2020, the group had recorded a taxable profit of 798 million euros. For its part, the automotive division posted an operating margin of 9.8% for the first quarter of 2021, compared with 1.3% a year earlier. For the period as a whole, the carmaker posted a net profit of 2.8 billion euros. This result was supported by a strong recovery in sales after the impact of the health crisis.

 

Performance in the second quarter of 2021

In the second quarter of 2021, BMW's business continued to grow. This was despite the shortage of electronic chips that affected the entire automotive sector. Between April and June, the group recorded a jump of around 45% in vehicle sales. In Europe and the United States, the increase was almost 75% and 88% respectively.

One of the most satisfying aspects of the quarter was the strong growth in the company's net profit. It reached 4.8 billion euros in Q2-2021, compared to a loss of 212 million euros at the same time last year. This result also exceeded market expectations. The market expected an average of 2.2 billion euros.

For the first six months of 2021, the group's net profit amounted to 7.6 billion euros. It reported strong growth after the effects of the coronavirus epidemic. In the first half of 2021, the German car manufacturer delivered a total of 1.34 million vehicles.

This led to a growth in half-yearly turnover. It reached 55.4 billion euros, up 28% year-on-year.

 

Quarterly update in the third quarter of 2021

The Bavarian carmaker BMW's results improved significantly in the third quarter of 2021. It has once again shown good resistance to the shortage of electronic components that has affected the entire automotive industry. Between July and September, the company sold 593,200 cars, down 12%.

However, it saw its net profit increase by 42.4% to €2.58 billion in Q3-2021. The group's Ebit reached 2.88 billion euros, up 49.8% year-on-year. The automotive division's Ebit margin was 7.8% in the quarter. For the first nine months of 2021, it was 11.3%.

In the third quarter of 2021, the Munich-based car manufacturer achieved quarterly sales of 27.47 billion euros. This represents a year-on-year increase of 4.5 percent.

 

About BMW's dividend and market capitalisation

BMW is one of the automotive giants that pays out a coupon to its shareholders at the end of each financial year. For the financial year 2020, the Board of Directors decided to submit for approval a dividend of 1.90 euros per ordinary share and 1.92 euros per share for holders of preference shares.

In addition, the company has a strong presence on the stock markets. It is listed on the Frankfurt stock exchange. Therefore, the BMW share is very popular with investors and traders. The company is also included in the European Stoxx 600 index. As of November 2021, its market capitalisation is over 60 billion euros.

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