The following is a summary of the Stellantis N.V. (STLA) Q4 2023 Earnings Call Transcript:
Financial Performance:
Stellantis achieved a record year-end with a 6% rise in net revenues, 11% rise in net profits, and a 19% increase in cash flow.
Adjusted Operating Income (AOI) margin of 12.8% reported, up from the previous year, with an industrial free cash flow of EUR12.9 billion.
Profit growth has been observed across all regions with specific improvements in North America and Europe, and Middle Eastern Africa doubling its yearly profit.Despite a strengthening euro negatively impacting revenue by EUR6.5 billion, the net pricing gains have resulted in an additional EUR6.7 billion margin benefit.
A 16% increased dividend of EUR1.55 per share to be proposed at the AGM and open market share buyback of EUR3 billion, which is double that of last year's.
Business Progress:
Stellantis reported on significant progress including a 21% increase in battery electric vehicle (BEV) sales, leadership in commercial vehicles in Europe and Latin America, and growth in the Middle Eastern and African markets.
Planned expansion of BEV models from 30 in 2023 to 48 in 2024, with specific product introductions such as the new eC3 from Citroen.
Ongoing investment in technology from conventional Internal Combustion Engines (ICE) to BEVs and range extenders, with the purpose of providing customers with greater value and choice.
Successful implementation of the BEV production process in existing plants and new BEV launches expected in the second half of 2024.
Expansion of manufacturing footprint in Africa and the Middle East markets with overall growth being faster than expectations.
Plans announced for 2024 include a focus on Light Commercial Vehicle (LCV) business, aiming to achieve margin parity between BEVs and ICEs, and EUR7.7 billion total returns, which is a 26% increase YoY.
More details: Stellantis NV IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
