Executive Summary

Figure 1: The BMW Group’s Strategy.

2.0 Analysis and findings

2.1 Overview of the company's financial statements

As an international automotive manufacturer the company has impacted by the coronavirus pandemic in the second quarter of the year. In total the market was decreased by – 19% compared to the previous year. However, coming to the third quarter the company’s sales recovered the effect which caused lockdowns (Covid-19). In addition the delivery is also raised up by + 8.6% from 621,981 to 657,592 units compared to the previous year in within July to September. Despite, the company’s total deliveries during nine month period was -12.5 less than previous year from 1,872,451 to 1,638,167 units. The total amount of the contracts from January to September period went down by -9.0% from 1,475,504 to 1.342.803 new contracts.

The group earnings also were down by – 7.1% from €74,844 to €69,508 million compared to the last year results within nine month period. The main decline in demand was seen by closing the dealership of the company and restrictions by corona virus pandemic. Although, the dealer from the China had the recovery from the second quarter. The Company’s cost of sales has seen the steadily down by -1.6% from €61,674 to €60,668 million within nine-month period compared to the 2019’s results. It also caused to optimization of the manufacturing costs as well as the development and research cost slight down by – 1.1% to €4,397 million (€4,448 million in 2019). The BMW group’s profit dramatically down by – 48.2% to €2,633 where it was €5,079 million in 2019 which was before financial result within nine-month period of the year. However, the company’s net profit increased by + 9.6% from €2,248 to €2,464 million compared to the previous year in the third quarter.
In the third quarter of the year the BMW group in Europe had the growth in deliveries of the car by +7.1% with 275,740 units when it was 257,540 units in 2019. +13.4% increase was recorded in Germany from 76,797 to 87,060 units. This must be noticed that in Asia there was 24.8% growth that 288,907 units delivered to the customers (it was 231,417 units in 2019). And China at the time was on the top which recovered the deliveries by 31.0% which was the largest result among other dealers of the group. The units were significantly raised from 176,225 to 230,920 compared to last year. [ CITATION BMW201 \l 1033 ] This was only for nine-month period results and in every factors shows that the recovery was recorded only in the third quarter of the year.