STLA - Stellantis N.V. (STLA) Q1 2024 Earnings Call Transcript

2024-04-30 11:36:03 ET

Stellantis N.V. (STLA)

Q1 2024 Results Conference Call

April 30, 2024 08:00 AM ET

Company Participants

Ed Ditmire - Head, Investor Relations

Natalie Knight - Chief Financial Officer

Conference Call Participants

George Galliers - Goldman Sachs

Thomas Besson - Kepler Cheuvreux

Michael Jacks - Bank of America

Patrick Hummel - UBS

Jose Asumendi - JPMorgan

Bruno Dossena - Wolfe Research

Henning Cosman - Barclays

Harald Hendrikse - Citi

Presentation

Operator

Ladies and gentlemen, welcome to the Stellantis First Quarter 2024 Shipments and Revenues Call. I will now hand you over to your host, Mr. Ed Ditmire, Head of Investor Relations at Stellantis. Mr. Ditmire, please go ahead.

Ed Ditmire

Thank you. Hello everyone, and thank you for joining us today as we review Stellantis Q1 2024 shipments and revenues. Earlier today, the presentation material for this call, along with the related press release, were posted under the investor section of the Stellantis Group website. Today, our call is hosted by Natalie Knight, the company's Chief Financial Officer. After a presentation, Ms. Knight will be available to answer questions from the analysts.

Before we begin, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on page two of today's presentation. As customary, the call will be governed by that language.

Now I would like to hand over the call to Natalie Knight, CFO, Stellantis.

Natalie Knight

Good morning and thanks, Ed. I'm pleased to present our shipment and revenue figures for the first quarter of 2024. Year over year revenues and shipment comparisons lagged stable customer sales due to transitions and our product offering, inventory management actions, regional mix and foreign exchange impacts. However, Q1 is also a period where we delivered improvements in key commercial dynamics. This is especially important as we move forward through 2024, where we're entering a phase which will be characterized by significant product portfolio updates and expansion, underpinning growth as the year progresses and right into 2025.

So, let's start with our next chart. During Q1, our global sales to customers remain steady at 1.5 million units driven by material increases in two regions, the Middle East and Africa, up 23% and enlarged Europe plus 6%. Despite the stable retail sales development, shipments decreased by 10% to 1.3 million units, and net revenues declined 12% to EUR41.7 billion due to destocking and manufacturing initiatives as we prepare for significant new product launches later this year, as well as a challenging comparison to Q1 ‘23, when we build inventory by 228,000 units after prolonged supply constraints. Excluding these temporary dynamics, both shipments and revenues would've increased. ...

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