Stellantis bags record annual profit following sales surge in 2023

Published Feb 15, 2024

Share

Stellantis on Thursday posted an 11 percent annual rise in annual profits to a record 18.6 billion euros (R380 billion) for 2023.

The French-Italian-US group, created from a merger of Peugeot-Citroen and Fiat-Chrysler, posted an annual rise of six percent in net revenue to 189.5 billion euros (R3.8 trillion) after selling 6.4 million vehicles worldwide, up from 6.0 million in 2022.

The group saw saw strong European sales of models including the Fiat Ducato, Opel Astra, as well as SUV favourites such as Peugeot 2008, Jeep Avenger and Alfa Romeo Tonale.

North America, where the group gets most of its profits, was hit last year by a lengthy strike by its US workforce. That cost some $3.2 billion in lost revenue.

This was offset by strong sales in Africa, the Middle East and South America.

The increase in net profit is largely due to an absence of penalties on CO2 emissions or recalls on airbags which had marred 2022.

The group, whose share price added 4.5 percent in early Paris trading, is also planning a new employee shareholding programme.

"Today's record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024," CEO Carlos Tavares said in a statement.

But the group believes car sales this year - particularly those of electric vehicles - will likely be disrupted by "macroeconomic and political" phenomena, according to chief financial officer Nathalie Knight.

Even so, the launch of dozens of new models, improved logistics flows and lower raw material costs should benefit the group, which continues to target a double-digit operating margin, as in 2023 (12.8 percent).

Group global sales of electric vehicles grew 21 percent in 2023.

Agence France-Presse

Related Topics:

businessFinance