By Victoria Waldersee

BERLIN, (Reuters) – BMW’s pre-pandemic profits in 2021 were more than doubled to 16 billion euros ($17.67billion), according to the company. The increase in prices and sales of premium cars boosted revenues despite constraints in supply chains.

The premium automaker reported 10.3% earnings margin last year. This was despite the shortage of semiconductors.

However, EBIT (earnings before interest and taxes) for its automotive segment suffered a 4.2% drop. This was due to a 14.2% decline in vehicle deliveries.

Quarterly, the Group’s net profit was 2.25 Billion Euros. This is three times more than last year and well below 2019.

BMW’s share price tumbled 7% from yesterday’s close to 70.95 euros at 1303 GMT, hitting the bottom of Germany’s bluechip index alongside Volkswagen (DE:) and Mercedes-Benz Group and in line with a European-wide slump in auto shares amid fears over disruptions to supplies.

French automaker Renault (PA:), Stellantis, as well as Swedish Volvo, were amongst the worst performers in their respective indexes’ on Thursday.

Because premium carmakers can charge higher prices, they are better equipped to handle supply chain problems than value brands.

Mercedes-Benz for instance, despite a 24.7 percent drop in deliveries during the fourth quarter 2021, still managed to increase its EBIT of 12% in its vans and cars division.

BMW saw 12.4% growth in revenues to 111 Billion Euros last year, and net profit reached a new record of 12.46 Billion.

Nicolas Peter, chief financial executive said “We are optimistic about the future and in a good place.”

According to the company, the dividend will be 5.8 euros per share. This is an increase from last year’s 1.9%.

($1 = 0.9053 euros)