BMW Group (BMW) Q3 2024 (Media Q&A) earnings summary

Executive summary

• Q3 saw significant challenges in China, including a 30% demand decrease and IBS-related delivery stops, but stabilization and recovery are underway with new product launches and dealer support measures.

• BEV deliveries rose 19.1% year-over-year to 294,052 units, offsetting some overall delivery declines.

• U.S. market performance remains strong, with October sales up by over 7,000 vehicles year-over-year, and continued confidence in local production and product fit.

• Group revenues fell 15.7% in Q3 2024 to €32,406 million, mainly due to lower automotive volumes and product mix.

• The company is committed to meeting EU CO2 targets, leveraging a diversified product portfolio including BEVs, plug-in hybrids, and improved ICE vehicles.

Financial highlights

• Group net profit in Q3 was €476 million, down 83.8% year-over-year; profit before tax dropped 79.4% to €838 million.

• Automotive free cash flow for the nine months was negative at €-191 million, mainly due to lower profit and higher inventory.

• Regular write-offs related to BBA acquisition continue as planned, with EUR 300–400 million per quarter until 2028.

• In Germany, year-to-date sales exceeded 184,000 vehicles, up 3% year-over-year, with BEV sales also increasing.

• Group research and development expenditure rose 27.2% to €6,642 million for the nine months.

Outlook and guidance

• Group expects a slight decline in deliveries for 2024 due to continued China weakness and IBS-related delivery stops.

• Automotive EBIT margin forecasted between 6% and 7% for 2024; ROCE expected between 11% and 13%.

• Stabilization and growth are expected in China and globally, supported by new product launches such as the X3 and Mini models.

• Hydrogen vehicles are planned for introduction in 2028, with anticipated market growth abroad.

• R&D and capital expenditure to remain high, driven by electrification and NEUE KLASSE model development.