With Important Product-Led Transition Year Underway, Stellantis Delivers €5.6 Billion Net Profit, €8.5 Billion AOI and 10% AOI Margin in the First Half of 2024

Rhea-AI Summary

Stellantis reported mixed financial results for the first half of 2024, with net revenues of €85.0 billion, down 14% compared to H1 2023. The company's net profit decreased by 48% to €5.6 billion, primarily due to lower volume and mix, foreign exchange headwinds, and restructuring costs. Adjusted operating income (AOI) fell to €8.5 billion, with an AOI margin of 10%.

Despite challenges, Stellantis is taking decisive actions to address operational issues, particularly in North America. The company plans over 20 product launches in 2024, including the refreshed Ram 1500 and new Peugeot 3008. Stellantis has also received approvals to launch the Leapmotor International JV, expanding its presence in key markets.

The company returned €6.7 billion to shareholders in H1 2024 and remains committed to returning at least €7.7 billion by year-end. Industrial free cash flows were near zero (-€0.4 billion) but are expected to improve in the second half of the year.

Positive

• Maintained a 10% Adjusted Operating Income (AOI) margin despite revenue decline
• Returned €6.7 billion to shareholders in H1 2024
• Committed to returning at least €7.7 billion to shareholders by end of 2024
• Reduced total inventory by 3% to 1,408 thousand units in H1 2024
• Planned launch of over 20 new products in 2024
• Received approvals for Leapmotor International JV, expanding market presence

Negative

• Net revenues down 14% to €85.0 billion compared to H1 2023
• Net profit decreased 48% to €5.6 billion compared to H1 2023
• Adjusted Operating Income (AOI) fell by €5.7 billion to €8.5 billion
• Industrial free cash flows near zero at -€0.4 billion
• Operational challenges in North American market share and inventory performance

   

With Important Product-Led Transition Year Underway, Stellantis Delivers €5.6 Billion Net Profit, €8.5 Billion AOI⁽¹⁾ and 10% AOI Margin⁽²⁾ in the First Half of 2024

• Net revenues of €85.0 billion, down 14% compared to H1 2023, primarily due to the decline in volume and mix
• Net profit of €5.6 billion, down 48% compared to H1 2023, primarily due to lower volume and mix, headwinds from foreign exchange and restructuring costs
• Adjusted operating income⁽¹⁾ of €8.5 billion, down €5.7 billion compared to H1 2023, primarily due to decreases in North America
• AOI margin⁽²⁾ of 10%, reflecting direct materials, workforce and logistics cost reductions which helped to mitigate the revenue decline
• Management taking decisive actions to address operational challenges, including North American share and inventory performance
• Industrial free cash flows⁽³⁾ near zero (-€0.4 billion), impacted by lower AOI⁽¹⁾, as well as negative working capital development and higher investment spend, both expected to evolve favorably in the second half, supporting positive full-year Industrial free cash flow
• Total inventory reduced by 3% to 1,408 thousand units over the first six months of 2024
• More than 20 launches planned in 2024, including a refreshed Ram 1500, European van range and the Peugeot 3008, the first on the new STLA family of platforms. Received all necessary approvals to launch the Leapmotor International JV, with initial deliveries in Enlarged Europe near the end of Q3 2024, followed by South America, Middle East & Africa and India & Asia Pacific
• Returned €6.7 billion in capital in the first half, reflecting in part the accelerated execution of the €3.0 billion 2024 share buyback program, and remain committed to return at least €7.7 billion before the end of 2024              
  

Attachment

• EN-Stellantis NV H1 2024 Press Release

FAQ

What was Stellantis' net profit for the first half of 2024?

Stellantis (STLA) reported a net profit of €5.6 billion for the first half of 2024, which represents a 48% decrease compared to the same period in 2023.

How much did Stellantis' revenue decline in H1 2024?

Stellantis (STLA) reported net revenues of €85.0 billion for the first half of 2024, which is a 14% decrease compared to the first half of 2023.

What was Stellantis' Adjusted Operating Income (AOI) margin in H1 2024?

Stellantis (STLA) maintained an Adjusted Operating Income (AOI) margin of 10% in the first half of 2024, despite facing revenue declines and operational challenges.

How many new product launches does Stellantis plan for 2024?

Stellantis (STLA) has announced plans for more than 20 product launches in 2024, including a refreshed Ram 1500, European van range, and the new Peugeot 3008.

How much capital did Stellantis return to shareholders in H1 2024?

Stellantis (STLA) returned €6.7 billion in capital to shareholders during the first half of 2024, which includes an accelerated execution of the €3.0 billion 2024 share buyback program.