“Record Results”. Stellantis does not mince words to define the 2022 accounts of the group born from the merger between FCA and PSA. The company reported net income of €16.8 billion, up 26% year-over-year, and adjusted operating income of €23.3 billion, up 29%. Net revenues amounted to 179.6 billion, an increase of 18% thanks to favorable net prices, the best model mix and the positive effects of conversions. Net industrial cash flow is 10.8 billion (+78%), consistent with the 2030 target of exceeding 20 billion. An ordinary dividend of 4.2 billion euro will be distributed to shareholders, corresponding to 1.34 euro per share.
And 2 billion in the form of bonuses will be distributed to group employees around the world. Italian workers will get an average of 1,879 euros in two tranches, in February and April. «A fair recognition – said the managing director Carlos Tavares – for the contribution of all employees to the growth of Stellantis in a very challenging economic context. When the company is doing well, all employees are doing well: this is the foundation of our culture of payment for performance».
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The alliance between FCA and PSA is also bearing fruit in industrial terms. In fact, Stellantis achieved net cash benefits of €7.1 billion from synergies, more than two years ahead of its €5 billion year-on-year target. While the forced march imposed by Tavares on the electrification of the range has led the manufacturer chaired by John Elkann to be number one in sales of electric commercial vehicles in the EU30, number two in global sales of electric vehicles in the EU30, number one in sales of hybrids in the USA. Overall, the increase in 2022 was 41%. The first US electric vehicle, Ram ProMaster, is arriving in 2023. The range of 23 electric models will be available on the market, 9 will arrive in 2023.
The Stellantis board of directors approved a treasury share buyback program for a maximum value of 1.5 billion euros, and up to a maximum of 10% of the capital, to be completed on the market by the end of 2023. The opportunity to start the buyback program – explains the company – derives from the significant generation of cash flows and the solidity of the balance sheet. These factors allow Stellantis to ensure adequate liquidity to handle a wide variety of economic and market environments, while facilitating an attractive return of capital for shareholders.
Stellantis expects a double-digit adjusted operating profit margin and positive industrial free cash flow this year. The CFO of Stellantis, Richard Palmer, applauds the record results achieved in 2022. «They are very strong results. Despite the current market challenges: the semiconductor crux, energy supplies or inflation».
Tavares, on the other hand, insists on electrification. “In addition to our record financial results and targeted implementation of the Dare Forward 2030 plan, we have also demonstrated the effectiveness of our electrification strategy in Europe. We now have the technology, products, raw materials and entire battery ecosystem to lead the same transformational journey in North America, starting with our first all-electric Ram in 2023 and Jeep in 2024.”
Going back to the 2022 numbers, the operating result has a margin of 13%, better than the goal of exceeding 12% by 2030; all segments contribute to growth. «The financial situation of Stellantis is solid – explains the group – with available industrial liquidity of 61.3 billion euros. All regions are growing and recording record profitability. The “Third Engine” (Middle East and Africa, South America, China, India and Asia Pacific) increased net revenues by 34% over the previous year and more than doubled its contribution to adjusted operating income, bringing it to 3 8 billion euros in 2022. These are important steps forward towards achieving the goal of obtaining more than 25% of global net revenues from these markets by 2030″.
The Stock Exchange likes results and buybacks. The stock rose by 1.3% to 16.07 euros.