Stellantis’ profit grew 26% in 2022 to € 16.8 billion

By Redação AutoIndústria | 2/22/23 | Translated by Jorge Meditsch

Motivated by the 2022 record global results, Stellantis announced the intention to buy back up to € 1.5 billion in stock until December 2023. The company said in a note that “the opportunity to start the buyback program is due to the significant cashflow generation and the strong balance sheet.

In its second year of existence, the world’s fourth largest automotive manufacturer registered a net profit of almost € 16.8 billion, 26% more than in 2021, with the automotive group revenue close to € 179.6 billion, an 18% growth from the previous year.

The adjusted operational profit reached € 23.3 billion, compared to € 18 billion one year before. The amount granted a 13% margin, surpassing the 12% goal to be achieved only in 2030 when the group expects to reach a € 300 billion net revenue, twice the obtained in 2021.

“Besides the record financial results, we also showed the efficiency of our electrification strategy in Europe. We now have the technology, products, inputs and all the battery ecosystem to lead this same transforming process in North America, starting with our first fully electric Ram models in 2023 and Jeep in 2024”, said the CEO Carlos Tavares.

The new program’s ordinary share buying price will not exceed 110% of the market price at NYSE, Euronext Milan or Euronext Paris. The market price will be calculated as the average of higher stock quotes at each of the five days of negotiation before the date of purchase.

After the September 2022 buyback of 69.1 million shares, equivalent to 2.2% of the company’s capital, the management board authorized the purchase of up to 244 million shares, enough to cover the new buyback program and the potential buyback of 99.42 million shares currently owned by the Chinese Dongfeng Corporation.