Stellantis Reports Record 2023 Results, Plans Higher Dividend and Buybacks

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In 2023, the car group Stellantis posted net profits of 18.625 billion euros, up 11% from 16.779 billion euros the year before, according to figures the company released on Thursday.

Stellantis notes that its 2023 earnings mark a new peak for the company, continuing a record run that also included net revenues and industrial free cash flow highs in 2022.

“These record financial results today prove we have become a new global leader in our sector and will remain solid as a rock heading into a potentially volatile 2024,” explained Carlos Tavares, the company’s chief executive officer.

Net income for the group reached 189.544 billion euros in 2023, a 6% rise from 179.592 billion euros in 2022.

Similarly, the operating profit of the automotive maker stood at 22.376 billion euros, up 10% from 20.276 billion euros the previous year.

Dividend rises by 16%

Additionally, Stellantis proposed a dividend of 1.55 euros per ordinary share, representing an approximate 16% increase versus the prior year, still awaiting shareholder approval.

Furthermore, the group announced a 3.0 billion euro open-market share buyback program for this year, including 500 million shares to be repurchased.

Outlook for 2024

The leadership at Stellantis highlighted a set of factors that could create a favorable environment for revenue in 2024, including improved logistics and supply chains, potential easing of interest rates, and the anticipated benefits of a broader product lineup.

The company also reiterated a commitment to a two-digit operating margin on adjusted earnings and a positive industrial free cash flow in 2024, despite macroeconomic uncertainties.

These comments reflect a strategy aligned with maintaining steady profitability while navigating market fluctuations and ongoing global supply dynamics.

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