Stellantis publishes this Wednesday a new record net profit of 16.8 billion euros for 2022, an increase of 26%, compensating for the instabilities of the automotive market with price increases. The automotive group, born from the merger of PSA (Peugeot, Citroën or Opel) and Fiat-Chrysler, recorded a net increase in turnover (+18%) to 179.6 billion euros, increases in price largely offsetting a drop in the number of vehicles sold in Europe.
Stellantis is progressing in particular on the North American market, with 1.8 million vehicles sold and a turnover of 85 billion euros, up 23%. In a market strained by logistical problems and shortages of electronic chips, the manufacturer was able to practice sharp price increases. The Jeep Grand Wagoneer, Jeep Compass and Chrysler Pacifica sold well.
The electric boom
In Europe, in a depressed market, the group recorded a sharp decline in sales, to 2.6 million units (-8%), which affected most of its brands (Peugeot, Citroën, Opel, Jeep). But the group was able to maintain its margins, in particular with price increases and new electric and hybrid models sold at a higher price.
The group’s “third driving force”, namely the other regions of the world, also saw its turnover increase by 34% over the year, and its operating margin double to 3.8 billion euros. Globally, rising raw material costs and logistics issues (delivery to dealers) resulted in costs of €9 billion. The context should improve in 2023, assures the group’s financial director, Richard Palmer, during a press conference.
2 billion euros redistributed to its employees
These results “confirm the value of our commitment and of this merger”, welcomes the leader. The group will propose the payment of a dividend of 1.34 euros per share, against 1.05 euros for the 2021 financial year. It also announces that it will redistribute 2 billion euros to its employees worldwide. “French employees will receive a minimum of €4,300, corresponding to 2.4 months’ salary for the first levels of remuneration under the profit-sharing agreement”, underlined, this Wednesday, Xavier Chereau, the director human resources and transformation of Stellantis. This is “the largest redistribution in ten years (Editor’s note: in the company)”, welcomed Bruno Bertin, human resources director Stellantis France. These €4,300 come in addition to a bonus of €1,000 and a salary increase of 5.3%, resulting from an agreement signed by 60% of the representative trade unions.
Stellantis adds that it will buy back 1.5 billion euros of shares by the end of 2023. The group expects this year that the automotive markets will rebound slightly (+5% in Europe and North America) . It is still aiming for a double-digit operating margin, having reached 13% of revenue in 2022. In the long term, Stellantis is targeting 300 billion euros in revenue by 2030.