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

Executive summary

• Support measures for Chinese dealers in Q3 included discounts, liquidity support, and one-off bonus payments, impacting free cash flow.

• Brake component and Integrated Brake System (IBS) issues affected up to 1.2 million delivered vehicles, leading to delivery stops, technical measures, and financial provisions for replacements.

• China sales and market share declined, with a 4.5% decrease in the first six months and a 30% demand drop in certain segments, mainly due to IBS issues; recovery is expected in Q4.

• U.S. market remains strong, with October sales up by over 7,000 vehicles year-over-year and continued local production of key models.

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

Financial highlights

• Group revenues fell 15.7% in Q3 2024 to €32,406 million and 5.8% for the nine months to €105,964 million, mainly due to lower automotive volumes and product mix.

• Regular BBA write-offs of €1.3–1.4 billion per year, with €300–400 million per quarter through 2028, due to purchase price allocation.

• German sales up 3% year-over-year, with October showing over 10% growth; BEV sales also increased.

• Group net profit in Q3 was €476 million, down 83.8% year-over-year; nine-month net profit was €6,132 million, down 35.8%.

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

Outlook and guidance

• No forecast for 2025 yet; stabilization and growth expected with new product launches, including the X3 and Mini models.

• Group expects 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%.

• Confident in meeting 2025 EU CO2 targets, with a review suggested for post-2030 targets.

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