Profitable first half-year – BMW Group stays on course in difficult environment

In a highly volatile environment, the BMW Group remained on course in the first half of 2022. With flexibility and expertise, the company encountered challenges including continued supply chain disruptions and bottlenecks for semiconductors and specific supplier parts.

  • 1st half-year: Group EBT totals € 16.2 billion (EBT margin: 24,5%)
  • 1st half-year: EBIT margin Auto of 8.5% (excluding consolidation effects related to BBA: 12.6%)
  • 2nd quarter: Free cash flow of €3 billion in Auto Segment
  • Annual outlook for EBIT margin in auto segment confirmed: 7-9%
  • BEV sales more than double in 1st half-year (+110.3%)
  • Persistent supply bottlenecks ‒ solid sales volume growth in 2nd half-year yoy expected
  • Zipse: “High degree of resilience and flexibility”
  • NEUE KLASSE defines what BMW Group stands for

Munich. In a highly volatile environment, the BMW Group remained on course in the first half of 2022. With flexibility and expertise, the company encountered challenges including continued supply chain disruptions and bottlenecks for semiconductors and specific supplier parts.

The BMW Group’s underlying strength and operational excellence was reflected in its profits for the first six months: Despite the volatility, the company earned a Group EBT margin of 24.5% (Q2 2022: 11.3%). The revaluation of the previously held shares in the Chinese joint venture BMW Brilliance Automotive Ltd. (BBA) contributed to the high return. This revaluation due to full consolidation on February 11 increased the financial result by € 7.7 billion.

The Automotive EBIT margin in Q2 was 8.2% (HY1 2022: 8.5%). In the first two quarters of the year, the full consolidation of BBA dampened Automotive Segment earnings. Excluding the effects from its full consolidation, the BMW Group posted an EBIT margin in the Automotive Segment of 12.0% in Q2 (HY1 2022: 12.6%) ‒ well above the long-term strategic corridor of 8-10%.

“Especially under unfavourable conditions, the BMW Group is characterized by a high degree of resilience. The company recognizes changes in the economic environment at an early stage and counteracts them accordingly. Our high degree of flexibility and operational performance have proven time and again to be an effective combination to ensure the BMW Group’s successful course even in rough waters. This strength will now be important again, as we see an increasing economic headwind coming up in addition to the ongoing supply shortages,” said BMW AG CEO Oliver Zipse in Munich on Wednesday.

To the long-term success of BMW Group contribute its pioneering spirit and consistent focus on innovation. An upcoming proof-point of its innovative strength is the pure electric NEUE KLASSE. It will be fully geared towards sustainability and circular economy, using new technologies and production processes from the middle of the decade onwards. The all-electric products of NEUE KLASSE will make a significant contribution to BMW Group sales volumes from the middle of the decade onwards and will further accelerate the ramp-up of e-mobility.

“Emotional products and innovative technology are and will remain the backbone of our business success. Our rapidly growing range of all-electric vehicles with the BMW Operating System 8 impresses customers and experts alike — and is already a central driver of our sales today,” said Zipse. “From 2025, we will make the next big leap with the NEUE KLASSE: The NEUE KLASSE defines what the BMW Group stands for in the future. At the start, we are planning a compact sedan in the 3‑series segment and a sporty SUV. By the end of the decade, the NEUE KLASSE is expected to account for more than half of our sales.”

Deliveries of fully-electric vehicles more than double

In the first half of 2022, the BMW Group was able to more than double its sales of pure electric vehicles to 75,890 units (2021: 36,087 vehicles/+110.3%; Q2 2022: 40,601 units; +85.2%). During the same period, sales of electrified vehicles increased significantly, climbing 20.4% to 184,468 units (2021: 153,243 vehicles; Q2 2022: 94,799 units; +14.2%). Electrified vehicles’ share of total deliveries rose to 15.9% (HY1 2021: 11.4%).

The BMW iX3* (2022: 21,548 vehicles; HY1 2021: 10,009 vehicles) and the MINI Cooper SE* (2022: 18,428 vehicles; HY1 2021: 13,454 vehicles) remained the most in-demand fully-electric models, reporting significantly higher sales than in the prior-year quarter. 69% of these fully-electric vehicles were delivered to customers in the European region. The innovative BMW iX and BMW i4, which are still being launched in the markets, have also been well received and contributed to the outstandingly high order bank of BMW Group. Further sales growth is expected in the second half of the year – on top from the fully-electric BMW i3 built in China, but also from the BMW iX1* and the BMW i7* luxury sedan.

Lower sales due to supply bottlenecks – base effect from prior year

Ongoing semiconductor supply issues and supply chain disruptions following Covid lockdowns in China, impacted production and deliveries during the first six months. With a total of 1,160,094 vehicles, BMW Group sales failed to reach the all-time high of the previous year (HY1 2021: 1,339,047 units; -13.4%Q2 2022: 563,187 units-19.8% from Q2 2021). The company nevertheless expanded its leading position in the global premium segment.

Significantly higher Group revenues in first half-year

Despite negative sales growth, Group revenues climbed 19.1% in the first six months of 2022 to € 65,912 million (HY1 2021: € 55,360 million; Q2 2022: 34,770; +21.6%). The full consolidation of the Chinese subsidiary BBA was one of the main contributing factors, bringing in revenues of around € 11 billion.

The Group cost of sales also rose significantly for the same reason, reaching €  54,399 million (HY1 2021: € 44,109 million; +23.3%Q2 2022: € 28,780 million; Q2 2021: € 22,521 million; +27.8%).

Group earnings before tax totalled  16,156 million after six months (HY1 2021: € 9,736 million; +65.9%), a new all-time high. This includes a tailwind of € 7.7 billion from the revaluation of previously held BBA shares at fair market value.

In the second quarter (Q2 2022: € 3,929 million; Q2 2021: € 5,979 million; ‑34.3%), Group EBT was lower than for the same period of last year. On the one hand, this reflects the one-time gain of € 1 billion in the second quarter of 2021 from the partial reversal of the provision for the EU antitrust proceedings. On the other, headwinds from the full consolidation of BBA in the second quarter of this year impacted Group EBT by around € 1.1 billion.

The Group EBT margin for the first six months came in at 24.5% (HY1 2021: 17.6%; Q2 2022: 11.3%; Q2 2021: 20.9%).

Group net profit amounted to  13,232 million (HY1 2021: € 7,623 million; +73.6%; Q2 2022: € 3,047 million; Q2 2021: € 4,790 million; -36.4%).

Group research and development costs (IFRS) for the first half-year totalled €  3,128 million (HY1 2021: € 2,737 million; +14.3%Q2 2022: € 1,560 million; Q2 2021: € 1,304 million/+19.6%) and were therefore significantly higher than the previous year. Spending was mainly focused on new models, as well as further electrification and digitalisation of the line-up. Upfront investments were also made for the NEUE KLASSE and automated driving.

The R&D ratio (HGB) of 4.5% (HY1 2021: 4.6%; Q2 2022: 4.5%; Q2 2021: 4.5%) was on a par with the previous year. The R&D ratio for the full year is expected to be within the target range of 5-5.5%.

Group capital expenditure was at a significantly higher level during the first six months at  2,929 million (HY1 2021: € 1,709 million; +71.4%; Q2 2022: € 1,831 million; Q2 2021: € 950 million; +92.7%). The increase is primarily due to upfront expenditures for the ramp-up of e-mobility and investments at BBA. The capex ratio stood at 4.4% at the end of the first half-year.

“Our investors know that the BMW Group has the financial strength to invest today in the success of tomorrow. We are steering the company through the current transformation with strategic foresight. We are positioning it in such a way that we can leverage our employees’ innovative capabilities and expertise to play a leading role in sustainable mobility today and in the future,” stated Nicolas Petermember of the Board of Management responsible for Finance.

Full consolidation affects financial figures for Automotive Segment

The financial key figures for the Automotive Segment show significant effects from the full consolidation of BBA during the reporting period. Segment revenues rose significantly to € 56,741 million (HY1 2021: € 47,745 million/+18.8%Q2 2022: € 30,015 million; Q2 2021: € 24,982 million; +20.1%).

As before, the BMW Group continued to benefit from positive pricing and product mix effects and from growth in its aftersales business. Revenues were also lifted by currency translation effects. In particular, the positive situation on the used car markets in the USA, UK and Germany led to higher revenues from the sale of end-of-lease vehicles.

The segment cost of sales rose to  48,093 million (HY1 2021: € 39,060 million/+23.1%; Q2 2022: € 25,464 million; 2021: € 20,344 million/+25.2%), with the BBA cost of sales a major contributor to this increase. In addition, headwinds from full consolidation, such as depreciation and amortisation from the purchase price allocation and elimination of inter-company profits, totalled around € 2.3 billion. Rising raw material and energy prices, as well as expenses due to higher prices and research and development costs, also increased the cost of sales. The growing percentage of electrified vehicles this year also raised costs compared to 2021.

Earnings before financial result (EBIT) totalled  4,830 million for the reporting period (HY1 2021: € 6,189 million/-22.0%Q2 2022: € 2,463 million; Q2 2021: € 3,953 million; -37.7%). The Automotive Segment EBIT margin was 8.5% (HY1 2021: 13.0%; Q2 2022: 8.2%; Q2 2021: 15.8%). Excluding the headwinds from the full consolidation of BBA, the segment EBIT margin came in at 12.6% for the half-year and 12.0% for the three-month period.

The segment’s financial result totalled  8,116 million (HY1 2021: € 1,337 million; Q2 2022: € 63 million; Q2 2021: € 797 million). This includes the tailwind from the revaluation of the previously-held BBA shares in February already referred to. The at-equity result, since 11 February no longer including BBA earnings, stood at € 137 million and was therefore significantly lower (HY1 2021: € 975 million; -85.9%; Q2 2022: € -123 million; Q2 2021: € 546 million).

Due to the effects described above, segment earnings before tax (EBT) for the first six months of 2022 amounted to  12,946 million (HY1 2021: € 7,526 million; Q2 2022: € 2,526 million; Q2 2021: € 4,750 million; -46.8%).

Free cash flow in the Automotive Segment reached  7,770 million for the reporting period (HY1 2021: € 4,902 million; Q2 2022: € 2,954 million; Q2 2021: € 2,380 million). The acquisition of BBA’s liquid funds, less the purchase price transferred in February, contributed € 5,011 million to this amount. In view of the strong demand for all-electric vehicles, the BMW Group will increase its investments in electromobility from the second half of the year. In addition, the company expects a slight decline in deliveries for the full year. This will only be partially offset by positive price and mix effects and the development of the used car markets. As a consequence, it will now be targeting a free cash flow in the Automotive Segment for the full year of at least €10 billion.

Earnings slightly higher for Financial Services Segment

The Financial Services Segment managed a total of 5,411,274 financing and leasing contracts with retail customers at the end of the second quarter (31 December 2021: 5,577,011/-3.0%). The limited availability of new cars – combined with intense competition in the financial services sector – was also reflected in the number of new contracts. In the first half of 2022, a total of 815,448 new financing and leasing contracts were concluded with retail customers (HY1 2021: 1,029,345; -20.8%Q2 2022: 382,019; Q2 2021: 540,279; -29.3%).

Thanks to the high-quality product mix, the financing volume per vehicle increased, partially offsetting the reduction in new contracts. The volume of new business from all financing and leasing contracts with retail customers amounted to € 28,442 million (HY1 2021: € 32,445 million) and was therefore only 12.3% lower than for the same period of last year.

High income from the resale of end-of-lease vehicles, especially in the US and Europe, paired with positive currency translation effects, benefited both segment revenues and earnings.

With growth of 2.3%, earnings before tax (EBT) in the Financial Services Segment increased slightly to  1,981 million (HY1 2021: € 1,936 million; Q2 2022: € 974 million; Q2 2021: € 1,149 million; -15.2%).

The percentage of BMW Group new vehicles leased or financed by the Financial Services Segment stood at 44.4% at the end of the second quarter (2021: 50.2%/-5.8 %-points).

Motorcycles Segment increases deliveries and revenues

In the first half of the year, the sales volume in the Motorcycles Segment remained at the same high level as in the strong prior year. A total of 107,555 BMW motorcycles and scooters were delivered to customers. (HY1 2021: 107,610 units; ‑0.1%; Q2 2022: 60,152 units; (Q2 2021: 65,018 units; -7.5%). Revenues were up slightly at  1,663 million (HY1 2021: € 1,621 million; +2.6%Q2 2022: € 864 million; Q2 2021: € 868 million; -0.5%).

Segment earnings before financial result (EBIT) totalled € 235 million (HY1 2021: € 284 million; -17.3%; Q2 2022: € 127 million; Q2 2021: € 149 million; ‑14.8%), with an EBIT margin of 14.1% (HY1 2021: 17.5%; Q2 2022: 14.7%; Q2 2021: 17.2%).

Outlook – high volatility expected to continue

The BMW Group expects business conditions to remain difficult in the second half of the year. The ongoing supply bottlenecks, particularly for semiconductors, the war in Ukraine and interruptions in supply chains have led to a decline in deliveries in the Automotive segment in the first half of the year. Although the company expects sales volumes in the second half of the year to be solidly higher than in the same period of the previous year, this will not fully compensate for lost volume in HY1 2022. As a consequence, deliveries for the year are expected to be slightly below previous year.

The percentage of electrified vehicles should still increase significantly and sales of fully-electric vehicles are expected to more than double.

CO₂ emissions in the EU new car fleet can still be expected to be slightly reduced. The significant increase in the proportion of electrified vehicles in total deliveries of the BMW Group is decisive for this.

As before, the company anticipates significantly higher Group pre-tax earnings, due to the full consolidation of BBA.

In the Automotive Segment, the EBIT margin is forecast to be within the range of 7 to 9%, as before. The expected decline in deliveries should be partially offset by positive price and mix effects and the continued good development of the used car markets. RoCE in the automotive business is also expected to remain in the range of 14 to 19%.

slight increase in deliveries is projected for the full year for the Motorcycles Segment. The EBIT margin is expected to be in the target range of 8 to 10% and the segment ROCE in a corridor of 19 to 24%.

In the Financial Services segment, the consistently good performance in the used car markets led to a rising segment result. Accordingly, Return on Equity (RoE) is now expected to be in the corridor of 17 to 20% (previously: 14 to 17%).

Based on current assessments, the Financial Services segment has recognised appropriate levels of provisions/ allowances to cover residual value and credit risks.

The targets outlined above are intended to be achieved with significantly higher employee numbers, resulting from the full consolidation of BBA. The proportion of women in management positions in the BMW Group should rise slightly regardless of the full consolidation.

Ongoing inflation and interest rate hikes will continue to shape the macroeconomic environment in the coming months and impact demand.

Accordingly, the above-average order bank — particularly in Europe — is expected to normalize towards the end of the year.

Further significant tightening of sanctions against Russia or reactive measures by Russia, an interruption of the gas supply impacting own plants and suppliers’ locations, as well as the possibility of the conflict spreading outside of Ukraine and further extended and ongoing Covid lockdowns are not factored into this guidance.

The actual business performance of the BMW Group may differ from current expectations given the numerous uncertainties and existing risks and opportunities.

The BMW Group in figures: Q2/ 2022Q2
Change in %
Deliveries to customers    
Automotive 1units563,187702,441-19.8
thereof: BMWunits496,432617,667-19.6
Employees (as of 31 Dec. 2021)118,909 
Automotive Segment EBIT margin%8.215.8-48.1
Motorcycles Segment EBIT margin%14.717.2-14.5
EBT margin BMW Group 2%11.320.9-45.9
Revenues€ million34,77028,58221.6
thereof:   Automotive€ million30,01524,98320.1
Motorcycles€ million864868-0.5
Financial Services€ million8,7658,2006.9
Other Entities€ million21
Eliminations€ million-4,876-5,470-10.9
Profit before financial result (EBIT)€ million3,4265,005-31.5
thereof:   Automotive€ million2,4633,953-37.7
Motorcycles€ million127149-14.8
Financial Services€ million9821,128-12.9
Other Entities€ million-1421
Eliminations€ million-4-226-98.2
Profit before tax (EBT)€ million3,9295,979-34.3
thereof:   Automotive€ million2,5264,750-46.8
Motorcycles€ million128149-14.1
Financial Services€ million9741,149-15.2
Other Entities€ million277124
Eliminations€ million24-193
Income taxes€ million-882-1,189-25.8
Net profit€ million3,0474,790-36.4
Earnings per share (common/preferred) 3 €4.30/4.317.23/7.24-40.5/-40.5

1 Deliveries including Joint Venture BMW Brilliance Automotive Ltd., Shenyang.

2 Group profit before tax as a percentage of Group revenues.

    3 Common/ Preferred shares -earnings per share of preferred stock are calculated by distributing the earnings required to cover the additional dividend of €0.02 per preferred share proportionally over the quarters of the corresponding financial year.

The BMW Group in figures: HY1/ 2022HY1 2022HY1  2021Change in %
Deliveries to customers    
Automotive 1units1,160,0941,339,047-13.4
thereof: BMWunits1,016,2281,178,210-13.7
Employees (as of 31 Dec. 2021)118,909  
Automotive Segment EBIT margin%8.513.0-34.6
Motorcycles Segment EBIT margin%14.117.5-19.4
EBT margin BMW Group 2%24.517.639.2
Revenues€ million65,91255,36019.1
thereof:   Automotive€ million56,74147,74518.8
Motorcycles€ million1,6631,6212.6
Financial Services€ million17,25116,1067.1
Other Entities€ million3250.0
Eliminations€ million-9,746-10,114-3.6
Profit before financial result (EBIT)€ million6,8178,030-15.1
thereof:   Automotive€ million4,8306,189-22.0
Motorcycles€ million235284-17.3
Financial Services€ million1,9481,8952.8
Other Entities€ million-174-5
Eliminations€ million-22-333-93.4
Profit before tax (EBT)€ million16,1569,73665.9
thereof:   Automotive€ million12,9467,52672.0
Motorcycles€ million237284-16.5
Financial Services€ million1,9811,9362.3
Other Entities€ million962265
Eliminations€ million30-275
Income taxes€ million-2,924-2,11338.4
Net profit€ million13,2327,62373.6
Earnings per share (common/preferred) 3 €19.63/19.6411.49/11.5070.8/70.8

1 Deliveries including Joint Venture BMW Brilliance Automotive Ltd., Shenyang.

2 Group profit before tax as a percentage of Group revenues.

    3 Common/ Preferred shares. Earnings per share of preferred stock are calculated by distributing the earnings required to cover the additional dividend of €0.02 per preferred share proportionally over the quarters of the corresponding financial year.

*Consumption/emissions data:

BMW iX3: Power consumption in kWh/100 km combined: 18.9-18.5 WLTP.

MINI Cooper SE: Power consumption in kWh/100 km combined: 16.9-14.9 NEDC, 17.6-15.3 WLTP.

BMW iX1: Power consumption in kWh/100 km combined: 18.4-17.3 WLTP (forecast value based on vehicle’s prior development status).

BMW i7 xDrive60: Power consumption in kWh/100 km combined: 19.6-18.4 WLTP.

GLOSSARY – explanatory comments on key performance indicators

Deliveries to customers
A new or used vehicle is recorded as a delivery once its handed over to the end user (which also includes leaseholders under lease contracts with BMW Financial Services). In the US and Canada, end users also include (1) dealers when they designate a vehicle as a service loaner or demonstrator vehicle and (2) dealers and other third parties when they purchase a company vehicle at auction and dealers when they purchase company vehicles directly from the BMW Group. Deliveries may be made by BMW AG, one of its international subsidiaries, a BMW Group retail outlet, or independent third-party dealers. The vast majority of deliveries – and hence the reporting of deliveries to the BMW Group – is made by independent third-party dealers. Retail vehicle deliveries during a given reporting period do not correlate directly to the revenues that the BMW Group recognises in respect of that particular reporting period.


Profit before financial result. Profit before financial result comprises revenues less cost of sales, less selling and administrative expenses and plus/minus net other operating income and expenses.

EBIT margin

Profit/loss before financial result as a percentage of revenues.


EBIT plus financial result.

Source: BMW Group,

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