Difficult quarter for Stellantis which in the first three months of 2024 recorded declining sales and revenues compared to the same period last year. After the publication of the accounts, Piazza Affari, the stock dropped 1,7% at the opening at 22,82 euros per share.
The Stellantis quarterly
In the first quarter of 2024 the net revenues of Stellantis stood at 41,7 billion euros, down 12% compared to the same period of 2023 due mainly to lower volumes and unfavorable currency exchange and mix effects, partly offset by stable prices. The data disappointed the expectations of analysts who expected a decline of 3% to 42,7 billion, while experts from Intermonte and Banca Akros expected a decline of 12%.
Down too consolidated deliveries which in the months January-March amounted to 1,335 million units, 10% less than the same period last year compared to the -8% expected by Intermonte analysts and the -7% expected by those of Intesa Sanpaolo. The decline, explains the company, reflects actions on production and inventory management in preparation for the arrival of new products in the second half of 2024. The data compares with the first quarter of 2023, when deliveries had instead grown due to the replenishment of stocks in the network after a prolonged period of supply limitations.
Moving forward with the data, the overall stock of new vehicles as of March 31 it was 1,393 million units (of which owned stock of 423.000 units), which this time reflects an improvement in level and structure compared to December 2023.
Finally, the global sales of Bev (Battery Electric Vehicle) e Live (Low Emission Vehicles) grew by 8% and 13% respectively compared to the same period last year, with the focus on new launches in 2024.
Stellantis confirms dividend and buyback
Stellantis has decided a ordinary dividend of 1,55 euros per share, up 16% compared to the previous year, approved by the shareholders' meeting. The detachment occurred on April 22nd, while the payment is scheduled for May 3. Furthermore, a €3 billion share buyback plan has been launched on track for completion by 2024.
Stellantis, 2024 guidance confirmed
The company has guidance for 2024 confirmed. In the note with which the revenues and deliveries of the first quarter were communicated, the company spoke of "a context in terms of supporting revenues" and reiterated the minimum commitment to obtain an adjusted operating profit margin (Aoi) at two figures in 2024, as well as positive net industrial cash flow despite macroeconomic uncertainties.
"Today we confirm our guidance for the year, this is very important,” said Stellantis CFO Natalie Knight, recalling that the guidance includes the minimum commitment to achieve a double-digit adjusted operating profit (AOI) margin in 2024, as well as industrial net cash flow positive despite macroeconomic uncertainties. “We expect the new products will help accelerate momentum as the year continues, especially in the second half of the year,” Knight said.
Stellantis also reported that it is “on track to deliver a total return on capital of more than €7,7 billion in 2024, corresponding to a return of 11% as a percentage of Stellantis' market capitalization as of January 2024, XNUMX.”
CFO Knight: “Growth and profitability improving in the second half of 2024”
“While the year-on-year comparison of deliveries and net revenues for the first quarter of 2024 is difficult for the transition to our product portfolio of new generation based on new platforms, we have achieved a net improvement in commercial dynamics with sales to end customers greater than deliveries to the network,” explained Natalie Knight, CFO of Stellantis, commenting on the group's first quarter revenue and delivery results.
"We are reducing inventories to strengthen our prices already solid in relative terms ahead of new or mid-cycle product launches this year in key regions. We introduced four new models in the first quarter of 2024 as part of our plan to launch 25 models this year, including 18 BEV versions which we believe lay the foundations for a marked improvement in growth and profitability in the second half of the year,” he said.
According to the CFO, Stellantis can count on "cutting-edge platforms that allow us to put the highest level products on the market" and to move quickly on electrification, as evidenced by the fact that “global Bev sales increased 8% and Phev sales in North America increased 79% year over year.”
“We are in a unique position compared to other players in the market, we have a number of vehicles coming to market this year. In Europe we maintain our position in a context in which some large groups are having many problems", continued the CFO, underlining that “Electric is an area where we have a lot of potential and if you look at the products that are coming, you understand that we are preparing to move full force and continue to believe that the process towards electrification is a strong point for Stellantis,” he said.
In the process of transitioning to electric, Stellantis will continue to seek to improve efficiency and synergies: “It is a priority for us as a company. We always aim to be disciplined on production costs and look at what we can do on fixed costs and efficiencies in terms of R&D and Capex. All of this will continue, because it will allow us to deal with the transition, moving forward. On the production front, we're always trying to figure out how to continue to drive price improvements. In our sector we need cost discipline and those who manage to be disciplined and efficient win,” he concluded.
