Stellantis, revenues decline in the first quarter of 2024

Stellantis is impacted by the transition to the new models and sees deliveries and consequently also revenues drop in the first quarter of 2024. On the other hand, it sells more electric and low-emission vehicles. The group born from the merger between FCA and PSA achieved 41.7 billion euros in net revenues in the first three months, down 12% compared to the same period in 2023 due – explains a note – above all to “lower volumes, effects unfavorable currency exchange and mix, partly offset by stable prices”. Consolidated deliveries were 1,335,000, down 10% due to interventions “on production and stock management in preparation for the arrival of the new products in the second half of 2024”. In the first quarter of 2023, deliveries increased, explains the company, “due to the replenishment of stocks in the network after a long period of supply limitations”. The overall stock of new vehicles is 1,393,000 units (including the owned stock of 423 thousand units) as of 31 March 2024 which «reflects – explains Stellantis – an improvement in the level and structure compared to December 2023».
Stellantis’ global sales of electric (BEV) and low-emission (LEV) vehicles in the first quarter of 2024 increased by 8% and 13%, respectively, compared to the same period in 2023. The company plans to launch new electric models in all of 2024.
The group, chaired by John Elkann and led by CEO Carlos Tavares, will distribute to shareholders an ordinary dividend of 1.55 euros per share (an increase of 16% compared to the previous year) approved by the shareholders’ meeting with the payment May 3rd. The €3 billion share buyback plan is on track for completion by 2024. Stellantis estimates double-digit 2024 adjusted operating profit and forecasts positive net industrial cash flow despite macroeconomic uncertainties.
«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 lays the foundation for a marked improvement in growth and profitability in the second half of 2024. year – comments Stellantis CFO, Natalie Knight – We are reducing inventories to strengthen our prices, already solid in relative terms, in view of the launch of new or mid-cycle products this year in key regions”.
For this reason, explains Knight, «the year-on-year comparison of deliveries and net revenues for the first quarter of 2024 is difficult for the transition to our next-generation product portfolio based on the new platforms. We have achieved a clear improvement in commercial dynamics with sales to end customers greater than deliveries to the network.”