Mercedes-Benz Group AG: Strong preliminary results for the first quarter 2023 exceed capital market expectations
April 20 2023 - 3:49PM
Business Wire
Mercedes-Benz Group achieved strong financial results in the
first quarter 2023 with especially the Industrial Free Cash Flow
exceeding capital market expectations.
Mercedes-Benz Cars delivered an adjusted Return on Sales of
14.8%, due to healthy net pricing, higher sales and a good product
mix - despite negative effects from higher material costs and
increased research and development expenses.
The adjusted Return on Sales of the Mercedes-Benz Vans division
rose to 15.6% due to substantially improved net pricing and higher
unit sales.
Mercedes Benz Group EBIT increased to € 5.5 billion, mainly
resulting from the higher EBIT of the Mercedes-Benz Vans
division.
The strong profitability of the automotive divisions translated
into an industrial free cash flow of € 2.2 billion significantly
exceeding market expectations.
The following figures for the first quarter 2023 are preliminary
and unaudited:
- Mercedes-Benz Cars adj. Return on Sales of 14.8% (consensus:
13.4%)
- Mercedes-Benz Vans adj. Return on Sales of 15.6% (consensus:
13.1%)
- Mercedes-Benz Mobility adj. Return on Equity of 15.6%
(consensus: 15.8%)
- Mercedes-Benz Group EBIT: € 5.5 billion (consensus: € 4.9
billion)
- Mercedes Benz Group Industrial Free Cash Flow: € 2.2 billion
(consensus: € 1.2 billion)
The company also has been able to post solid growth rates for
both battery electric and Top-End Vehicles in the first
quarter.
“In a challenging market environment, we have
once again demonstrated resilience. Strong pricing significantly
outweighed headwinds from material costs and led to another quarter
of solid financial results at Mercedes-Benz.”
Harald Wilhelm, Chief Financial Officer of
Mercedes-Benz Group AG
The full quarterly results and interim report will be published
on April 28th, 2023.
EBIT, Return on Sales (RoS) adjusted, Return on Equity (RoE)
adjusted and Industrial Free Cash Flow are defined on p. 48 of the
Mercedes-Benz Group Annual Report 2022.
Forward-looking statements:
This document contains forward-looking statements that reflect
our current views about future events. The words “anticipate,”
“assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,”
“could,” “plan,” “project,” “should” and similar expressions are
used to identify forward-looking statements. These statements are
subject to many risks and uncertainties, including an adverse
development of global economic conditions, in particular a decline
of demand in our most important markets; a deterioration of our
refinancing possibilities on the credit and financial markets;
events of force majeure including natural disasters, pandemics,
acts of terrorism, political unrest, armed conflicts, industrial
accidents and their effects on our sales, purchasing, production or
financial services activities; changes in currency exchange rates,
customs and foreign trade provisions; a shift in consumer
preferences towards smaller, lower-margin vehicles; a possible lack
of acceptance of our products or services which limits our ability
to achieve prices and adequately utilize our production capacities;
price increases for fuel, raw materials or energy; disruption of
production due to shortages of materials or energy, labour strikes
or supplier insolvencies; a decline in resale prices of used
vehicles; the effective implementation of cost-reduction and
efficiency-optimization measures; the business outlook for
companies in which we hold a significant equity interest; the
successful implementation of strategic cooperations and joint
ventures; changes in laws, regulations and government policies,
particularly those relating to vehicle emissions, fuel economy and
safety; the resolution of pending governmental investigations or of
investigations requested by governments and the outcome of pending
or threatened future legal proceedings; and other risks and
uncertainties, some of which are described under the heading “Risk
and Opportunity Report” in this Annual Report. If any of these
risks and uncertainties materializes or if the assumptions
underlying any of our forward-looking statements prove to be
incorrect, the actual results may be materially different from
those we express or imply by such statements. We do not intend or
assume any obligation to update these forward-looking statements
since they are based solely on the circumstances at the date of
publication.
Mercedes-Benz Group at a glance
Mercedes-Benz Group AG is one of the world's most successful
automotive companies. With Mercedes-Benz AG, the Group is one of
the leading global suppliers of high-end passenger cars and premium
vans. Mercedes-Benz Mobility AG offers financing, leasing, car
subscription and car rental, fleet management, digital services for
charging and payment, insurance brokerage, as well as innovative
mobility services. The company founders, Gottlieb Daimler and Carl
Benz, made history by inventing the automobile in 1886. As a
pioneer of automotive engineering, Mercedes-Benz sees shaping the
future of mobility in a safe and sustainable way as both a
motivation and obligation. The company's focus therefore remains on
innovative and green technologies as well as on safe and superior
vehicles that both captivate and inspire. Mercedes-Benz continues
to invest systematically in the development of efficient
powertrains and sets the course for an all-electric future: The
brand with the three-pointed star pursues the goal to go
all-electric by 2030, where market conditions allow. Shifting from
electric-first to electric-only, the world’s pre-eminent car
company is accelerating toward a fully electric and software-driven
future. The company's efforts are also focused on the intelligent
connectivity of its vehicles, autonomous driving and new mobility
concepts as Mercedes-Benz regards it as its aspiration and
obligation to live up to its responsibility to society and the
environment. Mercedes-Benz sells its vehicles and services in
nearly every country of the world and has production facilities in
Europe, North and Latin America, Asia and Africa. In addition to
Mercedes-Benz, the world's most valuable luxury automotive brand
(source: Interbrand study, 03 Nov. 2022), Mercedes-AMG,
Mercedes-Maybach, Mercedes-EQ and Mercedes me as well as the brands
of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz
Financial Services and Athlon. The company is listed on the
Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In
2022, the Group had a workforce of around 170,000 and sold around
2.5 million vehicles. Group revenues amounted to €150.0 billion and
Group EBIT to €20.5 billion.
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version on businesswire.com: https://www.businesswire.com/news/home/20230420005981/en/
Tobias Just, +49 711 17 41341, tobias.just@mercedes-benz.com
Edward Taylor, +49 176 3094 1776, edward.taylor@mercedes-benz.com
Andrea Berg, +1 917 667 2391, andrea.a.berg@mercedes-benz.com
Further information on Mercedes-Benz Group is available at:
group-media.mercedes-benz.com and group.mercedes-benz.com
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