BMW, the German car company, has announced a lower net profit for the second quarter of this year. Despite this, the company saw an increase in group revenue. It also stated that group earnings before tax are expected to decrease significantly in the current year.
According to BMW, net profit fell to 2.96 billion euros ($3.24 billion) from EUR3.05 billion in the same quarter of the previous year. It attributed the decrease to the absence of one-time effects from the full consolidation of its Brilliance Auto joint venture.
On the other hand, the company reported that revenue for the second quarter was EUR37.22 billion, compared to EUR34.77 billion last year. BMW credited this increase to the success of its fully-electric vehicles, which contributed to a doubling of sales in the first half of this year.
When it comes to earnings before interest and taxes (EBIT), BMW saw growth from EUR3.43 billion to EUR4.38 billion.
Looking to the future, BMW expects a significant decrease in group earnings before tax. However, it remains optimistic about vehicle sales in 2023, predicting solid growth compared to a slight increase in 2022. The introduction of new models is expected to be a key driver of this growth.
BMW had recently updated other aspects of its guidance as well.