Stellantis NV, the global automotive giant created by the merger of Fiat Chrysler and Peugeot-owner PSA Group, has reported better-than-expected annual profits, largely due to price increases that offset rising costs of materials and energy. As a result of its strong financial performance in 2022, Stellantis has announced a share buyback program for 2023 and a dividend payout of €4.2 billion, or €1.34 per share.
Financial Performance Highlights
Stellantis announced a 26% increase in net income to €16.8 billion in 2022, beating Bloomberg consensus estimates of €15.17B. Adjusted operating income margin moved up to 13%, surpassing the company’s 2030 target of 12%. Total net revenues for the period increased by nearly 20% to €179.59B, driven by strong pricing in North America and Europe.
Despite a decrease in shipments in Europe due to unfilled semiconductor orders, logistics challenges, and discontinuation of the Peugeot 108 and Citroën C1 models, Stellantis noted a 41% annual rise in global battery electric car sales to 288,000, reflecting the company’s commitment to electric vehicles as a key part of its long-term strategy.
Share Buyback Program
With strong financial results, Stellantis has announced a plan to repurchase €1.5B in shares this year. The move is aimed at increasing shareholder value and reflects the company’s confidence in its future growth prospects. The share buyback program, along with the dividend payout, is expected to further drive investor interest in the company.
Market Response
The announcement of the share buyback program and strong financial results have been well-received by investors, with shares in Stellantis trading higher in early European trading on Wednesday. The company’s commitment to electric vehicles and strong financial performance provide a positive outlook for the future, making it an attractive investment opportunity for investors.
Conclusion
Stellantis’ announcement of a share buyback program and better-than-expected annual profits demonstrate the company’s resilience in the face of challenges such as rising input costs and semiconductor shortages. The company’s focus on electric vehicles and commitment to long-term growth have positioned it as an attractive investment opportunity, which is reflected in the market’s positive response to the news. As Stellantis continues to innovate and grow, it is likely to remain a top contender in the automotive industry.
