BMW’s Irish profits fell 75% last year

Profits at BMW’s Irish operation fell 75 per cent last year, with the drop largely attributed to a fall in sales.

Revenues at the premium car brand were €157 million for the year ended December 31st, 2019, compared to €160.5 million for the previous year. Operating profits fell by 75 per cent to €1.04 million, while profit before tax was €871,000, down from €3.9 million in 2018.

Combined sales for its BMW and Mini brands totalled 4,533 in 2019, down 6.3 per cent on the previous year. BMW registrations made up 4,010, while Mini accounted for 523.

So far this year BMW sales have fallen 23 per cent to 3,080, while Mini sales are down 19 per cent to 420. The total new car market was down 25 per cent up to the end of October, with 116,124 registrations.

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BMW’s 3-Series is currently its best selling model, with 746 registrations, ahead of the 5-Series with 640 sales.

Plug-in hybrids have proved to be particularly popular, accounting for 723 sales so far this year, along with 186 fully electric cars.

Dublin remains the brand’s core market, making up 2,364 of its sales this year, with Cork its second biggest market with 379 registrations.

In 2019 revenues from the sale of cars and motorcycles fell by €3.7 million to €140 million, but parts revenues rose €200,000 to €16.8 million.

The company cut its stock of new cars by €4.1 million to €29 million during the year. It utilised €3.9 million of its warranty provision during the year, up from €3.7 million the previous year. The accounts note that current liabilities include provisions amounting to €653,000 relating to commercial disputes. This is down from €950,000 the previous year.

With 24 employees at the head office, wages and salaries were €2.1 million, down €125,000 on the previous year. Total director remuneration also fell by €45,000 to €311,000.

Despite the drop in profits and revenues the Irish division still paid dividends of €5.3 million to its parent operation BMW AG in Germany.