Mercedes-Benz Group AG: Strong preliminary results for the first quarter 2023 exceed capital market expectations

STUTTGART, Germany--(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.

View source 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

Source: Mercedes-Benz Group