![](https://www.just-auto.com/wp-content/uploads/sites/30/2023/12/BMW-i7-2.jpg)
BMW Group first quarter 2024 revenues dipped 0.6% year on year to EUR36,614m on higher sales volume and a more favourable product mix.
Pre tax earnings (EBT) fell 18.9% to EUR4,162m including a EUR108m boost from interest rate and currency hedging transactions.
EBT margin was 11.4% versus 13.9% and above the >10% full year target.
Net profit fell 19.4% to 2,951m.
Automotive segment revenues dipped 1.1% to EUR30,939m. Earnings before financial result (EBIT)fell 28.2% to EUR2,710m and EBIT margin was 8.8% (versus 12.1%) and within the full-year target of 8-10%.
EBIT was impacted by higher manufacturing costs which increased from Q2 2023 and carried through into Q1 2024.
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By GlobalDataResale results from end of lease vehicles proved to be a headwind against Q1 2023 yet remained positive. Starting with the second quarter of 2023, the competitive environment has intensified due to a better availability of vehicles and this led to a gradual softening of the global price environment in the new and used car business which continued into the first quarter of 2024.
For the full year 2024, the company expects net impact of volume, product mix and price to be slightly positive year on year with additional momentum from the new 5 series and better availability of the 7 series within the first full year leading to a stronger product mix.
EBIT of the auto segment was also impacted higher selling & administrative costs, largely due to IT projects and the increase in personnel costs implemented from the third quarter of 2023.
R&D expenses rose 27% to EUR1,974m as spending was mainly focused on further electrification and digitalisation of the vehicle fleet, as well as continued development of automated driving functions. Development expenditure was also directed towards upcoming new models.
BMW confirmed full year guidance and expected to see slight growth in customer deliveries worldwide in 2024.
Group earnings before tax were forecast to decrease slightly, due to higher manufacturing and fixed costs, particularly personnel costs and R&D expenses, compared to the previous year. The projected decrease in used car prices was also anticipated to contribute to this development.
The group expects an EBIT margin in the automotive segment of between 8-10% for the full year.
Q1 deliveries rose 1.1% to 594,533 automobiles. BMW brand volume was up 2.5% to 530,933 units.
Mini sales fell 9.4% to 62,075 amid range renewal while Rolls-Royce volume dipped 7% to 1,525 cars delivered.