(News Bulletin 247) – The manufacturer resulting from the merger between PSA and Fiat Chrysler generated record net income, maintained its operating margin close to 13% and generated solid cash generation. The manufacturer will return 7.7 billion euros to its shareholders in the form of dividends or share buybacks.

The year 2023 has been a good year for Stellantis. To the point that its profit was impressive, approaching that of Totalenergies. Over the past year as a whole, Stellantis generated a net profit of 18.63 billion euros, up 11% year-on-year, compared to just under 20 billion euros for the oil major.

The automobile manufacturer resulting from the merger between Fiat Chrysler and PSA saw its automobile sales increase by 7% year-on-year to 6.2 million units.

Its revenues increased by 6% to 189.54 billion euros, compared to 179.6 billion euros in 2022. The group’s ability to raise its prices increased revenues to the tune of 6.7 billion euros. ‘euros, while sales volumes and distribution had a positive impact of 8.2 billion euros. Currency effects, on the other hand, reduced 6.5 billion euros in revenue.

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A margin close to 13%

Current operating profit stood at 24.34 billion euros, up 1% year-on-year.

Once again illustrating the group’s iron discipline on costs, profitability remained high. The current operating margin stood at 12.8% in 2023 compared to 13.4% in 2022. In North America, the most important region for the company, profitability fell from 16.4% to 15.4%. but remains at a very high level for a “mass market” manufacturer.

In all other regions, the manufacturer maintained or increased its current operating margin. In particular, it remained stable at 9.8% in Europe.

Industrial cash flow jumped 19% to 12.86 billion euros.

According to consensus cited by Barclays, analysts expected revenues of 190.36 billion euros, a current operating margin of 12.5% ​​and industrial free cash flow of 12.4 billion euros.

“Today’s record financial results are proof that we have become a new global leader in our sector and will remain rock solid as we enter an eventful 2024,” said the CEO of Stellantis, Carlos Tavares.

7.7 billion euros returned to shareholders

For 2024, Stellantis expects to achieve double-digit current operating margin and positive industrial free cash flow.

Building on these once again solid results, Stellantis announced that it would propose a 16% increase in its dividend to 1.55 euros per share. The group also announced a share buyback program of 3 billion euros which will be executed in 2024. In total, Stellantis will return 7.7 billion euros to its shareholders in 2024, or 26% more than ‘in 2023.

This new good publication from the group allows Stellantis to gain 3.6% around 9:20 a.m. Royal Bank of Canada notes that current operating profit exceeded expectations in the second half at 10.2 billion euros with a margin of 11.2% against 11% expected. The bank also highlights that cash flow also exceeded analysts’ forecasts over the period.

The group also announced that it would hold a day dedicated to investors on June 13.