Stellantis Group, the world's fourth-largest automaker, reported its first full fiscal year nearly a year after the merger was completed.
According to the Stellantis Group's financial results released on February 24, its main indicators in 2021 are significantly higher than the pre-merger financial data, while in China, India and Asia-Pacific markets, although shipments (including joint ventures) in 2021 increased by 20.99% compared with the same period last year, the share of net revenue was only 2.62%, the lowest of all markets.
According to the financial report, the full-year net income of Stellantis Group in 2021 reached 152 billion euros, an increase of 14 percent; adjusted operating profit nearly doubled to 18 billion euros; and net profit reached 13.354 billion euros, an increase of 179 percent over the same period last year. In other key financial indicators, Stellantis Group achieved an adjusted operating profit margin of 11.8% in 2021 and a net cash gain of 3.2 billion euros, which has reached 80 per cent of the target.
"the company achieved its main goals ahead of schedule through synergies." In a conference call after the release of the results, Richard Palmer (Richard Palmer), CFO of Stellantis Group, made this statement, mainly reflected in the adjusted operating profit margin and cost savings targets.
After ringing the bell on the New York Stock Exchange on January 19 last year, Tang Weishi (Carlos Tavares), the first CEO of the Stellantis Group, said that the group's goal was to achieve a profit margin of 7 per cent and to achieve a cost reduction of more than 5 billion euros by 2024 through synergies.
Although the main target commitments have been met, due to the epidemic and supply chain constraints, the actual production of the Stellantis Group in 2021 is about 20% lower than the planned output, which also affects its overall financial performance to some extent. In addition, the launch of new products and the imbalance of business in major markets are still the main factors restricting the performance of Stellantis Group.
According to the analysis of Stellantis Group's quarterly data last year, some industry analysts believe that Stellantis Group's good financial performance for the whole year mainly benefited from the fourth quarter of 2021, but this is not due to the introduction of more new products concerned by consumers, but only due to the seasonal rebound in consumption under the overall shortage of the market.
According to the financial report, in 2021, Stellantis Group only launched more than 10 new models, including Citroen C4, Fiat Pulse, DS 4, Jeep Grand Cherokee, etc., but this is still too slow for Stellantis Group, which owns 14 brands, including Chrysler, Fiat, Peugeot, Citroen, Opel and Maserati.
Another concern for the market is the imbalance of Stellantis Group's business in major global markets. Financial results show that North America and Europe are still the most important markets for Stellantis Group. The former contributed about 30 per cent of shipments in 2021, while the latter accounted for nearly half. In the two financial data of net revenue and adjusted operating profit, the contribution of the North American market ranks first, while the European market ranks second. Among them, the adjusted operating profit of the North American market accounts for more than 63%.
"net revenue growth was mainly due to a favourable vehicle mix and a strong pricing strategy partially offset the adverse impact of exchange rate shifts." Stellantis interpreted its performance in the North American market in its earnings report.
Compared with the strength in North America and Europe, the performance of Stellantis Group in China, the world's largest single car market, can only be described as lacklustre. Figures show that DPCA and GAC Fick, two Stellantis joint ventures in China, sold only 100000 and 20, 000 vehicles respectively in 2021, falling short of mainstream brands' monthly sales.
"the current difficulties in the Chinese market are very disappointing and we need to analyze the reasons behind them." As early as a year ago, Tang Weishi said that Stellantis would not rule out any new business model in the Chinese market in the future.
On January 27th Stellantis unilaterally announced plans to increase its stake in Guangzhou Auto Fick, a joint venture with GAC GROUP, from 50 per cent to 75 per cent. GAC GROUP and Stellantis have agreed to the formalities of the deal, but are still subject to regulatory approval. Since then, on February 9, there is news in the industry that DPCA will adjust its structure. "Dongfeng is internally known as the 'two rooms and one hall' model, that is, DPCA is retained as a production base to maintain the existing stock ratio; its two major brands, of which Dongfeng Peugeot is dominated by France and Dongfeng Citroen is dominated by the Chinese side." A person familiar with the matter revealed.
"it is not possible to disclose more at this time, and details of the Chinese market plan will be announced in the global strategic plan on March 1." On how to increase the weight of Chinese market performance in the global market, Stellantis China said.
