Il 2023 went better than expected stellantis. Despite the challenges of the sector, the automotive industry giant born from the merger between FCA and Peugeot managed to record a increase in revenues netti by 6%, reaching the figure of 189,5 billion euros, driven by a 7% increase in consolidated delivery volumes. L'Net income increased by 11%, reaching 18,6 billion euros, while the adjusted operating result grew by just 1% to 24,3 billion euros, with a revenue margin of 12,8%, down from 13,5% in 2022. These results, although positive, show more modest growth compared to years earlier, but in any case, higher than expected.
“The record results announced today are proof that we have become a new global leader in the sector and that we will continue to be solid even in anticipation of a turbulent 2024,” he commented Carlos Tavares, CEO of Stellantis.
Looking to the cash flow net industrial figure, this figure also reached the record figure of 12,9 billion, highlighting a growth of 19% over 2022.
Tavares: “We need all Italian factories”
The automotive giant has achieved excellent results in the automotive sector low emission vehicles, with a 27% increase in sales in 2023. Globally, EV sales grew 31%. In the United States, Stellantis ranked first for hybrid vehicles and second for low-emission vehicles, consolidating its presence in the North American market.
“If we manage to maintain this pace, we could reach the one million mark even sooner: to do so, we will need all our Italian plants – assured Tavares -. New models will arrive, but I can't say which ones yet. The Panda will be replaced", underlining that they are "satisfied with the incentives. An excellent decision, we thank the government."
Tavares: “We will use Turin's skills against China”
Tavares then offered a sign of collaboration to the government after the controversy over the automotive giant's industrial strategies and the risks for Italian factories. “There is a future for the Pomigliano d'Arco and Mirafiori factories”. He has though criticized the project of the Minister of Business and Made in Italy, Adolfo Urso, to bring a second manufacturer to produce in the country, probably from China, underlining the potential negative impact on the competitiveness of the European automotive industry. “Are we sure that inviting the Chinese to produce in Europe will help achieve the goal of one million vehicles? It will be interesting to see if any European country wants to encourage the entry of Chinese manufacturers into Europe, ready to compete with local manufacturers on costs and performance: it would be really strange".
“Against China – he continued – we will use all the competitions we have, including those in Turin. We need the best brains to develop the technology needed to fight the competition."
Tavares: “Maserati is Italian and will remain so”
Finally, Tavares reassured the future of Maserati, ensuring that it will remain an Italian brand produced in the country. “We have no ongoing negotiations about anything resembling a merger. And we certainly have no operations under study with Renault, I want to be frank,” said the top manager, denying rumors of possible acquisitions and mergers, in particular regarding Renault, General Motors and Ford, thus ending any speculation.
Dividends and share repurchase program
Stellantis has demonstrated its commitment to shareholders through the distribution of record dividends of €6,6 billion in 2023, an increase of 53% compared to the previous year. The dividend proposed for 2024 it is 1,55 euros per common share, marking an increase of 16%, with an ex-dividend date of April 22, 2024. Additionally, the company announced a program of buyback for 2024 by 3 billion euros, which includes 0,5 billion for shares to be allocated to share-based remuneration plans and the purchase of shares by employees.
“Both the buyback and the dividend which increases by 16% are two of the most exciting elements,” declared the CFO of Stellantis, natalie knight, “and demonstrate that the business we do is efficient and works”. What about 2024? “It will be a turbulent year” explained Knight, adding however that the company “has already demonstrated its resilience and this is why we confirm the forecast of a double-digit operating margin and a positive net cash flow also for the current year” .
Updated Thursday 15 February 2024 at 15pm
