Stellantis, the third-largest carmaker globally by sales, announced on Wednesday that its revenue had increased by 14% in the first quarter due to higher shipments. The improvement in semiconductor supply and stronger pricing power also contributed to this growth. However, logistic issues resulted in increased inventories during the January-March period, weighing on the company’s market share. Although Stellantis is not concerned about the absolute level of inventories, Jefferies analysts have recommended monitoring the inventory situation.
Stellantis’ net revenue for Q1 reached €47.2 billion ($52 billion), beating analysts’ expectations of €45.5 billion. Consolidated shipments were up 7% to approximately 1.48 million units. The company’s sales of battery electric vehicles (BEV) also surged by 22% in the first quarter. Stellantis confirmed its forecast for a double-digit margin on adjusted operating profit and for positive industrial free cash flow for the year. However, the company only provides revenue and shipment data for the first quarter.
Although the better fulfillment of semiconductor orders has improved Stellantis’ capacity to produce vehicles, inventory challenges remain. The carmaker’s total group vehicle inventories stood at around 1.3 million units at the end of March, up approximately 230,000 from the end of 2022. Stellantis’ shares declined by 2.1% as a result, making it the worst-performing stock within Italy’s blue-chip index.