BMW back in the black after UK sales move up a gear

The UK arm of BMW surged back into the black during 2023 thanks to a jump in sales across all its brands.

The Hampshire-headquartered division has reported a pre-tax profit of £114m for the year after posting a pre-tax loss of £16.8m in the prior period.

Newly-filed accounts with Companies House also show that its revenue climbed from £5.3bn to £5.5bn over the same 12 months.

The total number of BMW vehicles being registered in the year increased by 2.9 per cent to 111,734 while Mini’s rose from 45,854 to 47,594.

However, Mini’s market share dipped from 2.8 per cent to 2.5 per cent. In the premium segment, BMW’s market share fell from 22.6 per cent to 20.6 per cent.

The motorcycle division’s registrations rose by nine per cent to 9,460.

BMW ‘satisfied’ as electric vehicles shift ramps up

A statement signed off by the board said: “With the supply constraints reducing, the company has seen an increase in registration levels, leading to higher profit.

“As such, the company can be satisfied with the course of business in the financial year 2023..”

BMW added: “BMW’s continued focus on fuel efficiency and emission reductions within the overall fleet, all support the company’s strategy of sustainable and active management of its product portfolio.

“Electric mobility is among the major topics driving the ongoing transformation in the automotive industry.

“The BMW Group is systematically continuing to electrify its model range as a key component of its product strategy.

“Electrified vehicles are playing a major role in reducing feel emissions and this achieving BMW’s ambitious strategic carbon reduction targets.

“The Neue Klasse has the potential to accelerate the market penetration of electric mobility and the Mini model range is set to be exclusively all electric by the early 2030s.”

Total dividends of £51.2m were paid during the year to BMW’s parent company, down from £132.8m.

The directors recommended a final total dividend for 2023 of £84.4m, which was paid in May 2024.

BMW achieved a revenue of £5.1m from the sale of vehicles and motorcycles, up from £4.9m, and £401,296 from parts, down from £423,226.

During the year the average number of people employed by the company increased from 419 to 442.

UK success follows Rolls-Royce Motor Cars

The results come after Rolls-Royce Motor Cars, which is owned by BMW, saw its revenue accelerate to almost £1bn in 2023 as demand for personalised luxury vehicles continued across the world.

The business reported a revenue of £984.2m for its latest financial year, up from the £887.8m it achieved in 2022.

Rolls-Royce Motor Cars also posted a pre-tax profit of £128.8m, up from £121.1m.

The firm achieved its highest year of sales in the marque’s 119-year history in 2023 with 6,032 cars delivered across almost 50 countries, up from 6,021.

During the year, an interim dividend of £91.2 was paid to BMW UK. In May 2024, another interim dividend of £95.5m was also paid.

Sales grow at parent group but profit dips

The results for BMW’s UK arm come after the group announced its revenue increased to €155.4bn in the year, up from €142.6bn.

However, its pre-tax profit fell by more than 27 per cent to €17bn.

Chairman Oliver Zipse said: “The year 2023 underlined how we are implementing our strategy consistently and successfully.

“We posted strong growth and substantially increased our percentage of fully-electric vehicles, while improving our operational profitability.

“A lot of people talk about ‘transformation’. For us, it’s more a question of continuous progress.

“We are advancing forward with our course – offering our customers the newest innovations and the latest technology, regardless of the vehicle’s powertrain.

“In this way, we aim to continue to deliver strong products for strong demand.”

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