Higher car prices drive Stellantis to 2022 net profit beat

Stellantis NV announced a new share buyback program for 2023 after the automaker posted better-than-expected annual profit, thanks to price hikes that helped outweigh lower car shipments in Europe and elevated input costs.

The automaker formed from a merger between Fiat Chrysler and Peugeot-owner PSA Group in 2021 reported a 26% year-on-year jump in net income to €16.8 billion (€1 = $1.0657), beating Bloomberg consensus estimates of €15.17B. Meanwhile, adjusted operating income margin moved up to 13% in 2022, topping Stellantis’ 2030 target of 12%.

Total net revenues for the period gained by nearly a fifth to €179.59B, above expectations. The majority of the top-line figure stemmed from the group’s North America and European segments, which were both boosted by stronger pricing to offset increased raw material and energy costs.

The revenue uptick countered an 8% dip in shipments in Europe that was caused by unfilled semiconductor orders, logistics challenges, and the discontinuation of the Peugeot 108 and Citroën C1 models. Total vehicle sales slipped by 2% to six million.

Stellantis noted that global battery electric car sales – like many of its peers, a key pillar of its long-term strategy – rose by 41% annually to 288,000.

With the results in mind, the company unveiled a plan to repurchase €1.5B in shares this year. It also aims to pay out an ordinary dividend worth €4.2B, or €1.34 per share.

Shares in Stellantis were in the green in early European trading on Wednesday.