BMW sees Q1 figures jump after full consolidation of China joint venture BBA

BERLIN -- BMW's earnings before tax (EBT) in the first quarter (Q1) of fiscal year 2022 more than quadrupled year-on-year to reach 12.2 billion euros ($12.9 billion), the German carmaker said on Thursday.

The full consolidation of BMW's joint venture with Brilliance China Automotive Holdings Ltd had a positive one-time effect of around 7.7 billion euros, according to the company. Back in February, the German carmaker increased its stake in BMW Brilliance Automotive Ltd (BBA) from 50 to 75 percent.

Revenues rose by 16.3 percent year-on-year to reach 31.1 billion euros in the first three months of the year. The consolidation of BBA also had a positive effect on this development. According to BMW, the new Chinese subsidiary contributed 3.3 billion euros in revenues.

"The strength and resilience of the BMW Group are particularly evident in this challenging environment," said Oliver Zipse, chairman of the Board of Management of BMW AG, stressing that the consolidation of BBA was an "important strategic move."

Due to supply bottlenecks and the pandemic development in China, global car deliveries of the BMW Group fell by 6.2 percent to 596,907 units. The group's luxury brand Rolls Royce was the only to record a notable increase, up 17.7 percent to 1,624 units in the first quarter.

Sales of electrified vehicles continued to grow and rose by 28 percent to 89,669 units in Q1, according to BMW. Sales of purely electric vehicles particularly more than doubled to 35,289 units.

"Bolstered by strong global demand" for its premium vehicles, the BMW Group is maintaining its guidance for fiscal 2022, expecting earnings before interest and taxes (EBIT) to range between 7 and 9 percent.