Shares of BMW AG were gaining around 2 percent in the morning trading in Germany after the luxury carmaker reported Friday significantly higher profit in its first quarter with strong growth in deliveries.

According to the company, the significant recovery of the markets, which began in mid-2020, continued to gain momentum during the first quarter.

Further, BMW reaffirmed its outlook for the full year, expecting business performance continuing to develop positively. Group profit before tax is predicted to rise significantly for the year.

The company projects Automotive segment to record significantly higher EBIT margin, at the upper end of the forecast range between 6 and 8 percent, and a solid increase in deliveries.

The Motorcycles segment is expected to record EBIT margin within a target range of 8 to 10 percent with solid increase in deliveries.

BMW also expects to increase sales of fully electric vehicles by an average of more than 50 percent per year through to 2025. By that year, BMW plans to have some two million fully electric vehicles on roads worldwide.

The company is also on track to achieve the European Union’s ambitious decarbonisation targets by 2030.

For the first quarter, BMW’s group net profit surged to 2.83 billion euros or 4.26 euros per share from 574 million euros or 0.84 euros per share in the pandemic-affected prior year.

Group profit before tax improved to 3.76 billion euros from 798 million euros last year. Profit before financial result or EBIT climbed 120 percent from last year to 3.03 billion euros, and EBT margin came in at 14 percent, up from 3.4 percent last year.

Group revenues grew 15.2 percent to 26.78 billion euros from last year’s 23.25 billion euros, while it was up 18.9 percent on adjusted for currency factors.

The first-quarter deliveries climbed 33.4 percent to 636,606 units from last year’s 477,111 units.

Worldwide deliveries of BMW brand vehicles grew 36.1 percent to 560,543 units. At 74,683 units, MINI brand sales were 16 percent higher. Rolls-Royce Motor Cars delivered 1,380 ultra-luxury automobiles, the highest number ever achieved in a single quarter, up 61.8 percent.

In Europe, deliveries grew 8.1 percent, despite a 5 percent drop in Germany and 4.6 percent drop in the UK. Deliveries to customers in the Americas region rose 17.4 percent. In Asia, the BMW Group delivered a total of 287,697 units, up 77 percent mainly with strong growth in China.

The company also recorded strong demand for electrified vehicles, such as plug-in hybrids and fully electric vehicles, in the quarter. A total of 70,207 electrified vehicles delivered to customers, up 128.7 percent.

In Germany, BMW shares were trading at 84.66 euros, up 1.52 percent.

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