STUTTGART, Germany--(BUSINESS WIRE)--Mercedes-Benz Group AG generated solid sales in the third quarter despite product transitions, a challenging market environment and fierce competition, particularly in China. Continued Free Cash Flow generation from the industrial business reached €2.39 billion for Q3 (Q3 2023: €2.35 billion) supported by favourable working capital development. Net liquidity reached €28.73 billion (Q3 2023: €28.49 billion).
“The Q3 results do not meet our ambitions. Nonetheless Mercedes-Benz continues to generate solid cash flows even in challenging times. We are taking a prudent view about market evolution going forward and we will step up all efforts on further efficiency increases and cost improvements across the business.”
Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG
Divisional results
For Mercedes-Benz Cars weaker macroeconomic conditions and fierce competition, mainly in Asia, outweighed improved product availability leading to adjusted earnings before interest and taxes (EBIT) of €1.2 billion (Q3 2023: €3.4 billion). As previously announced in September, Q3 EBIT was weaker compared with the second quarter due to softer net pricing and a less favourable sales mix, leading to an adjusted Return on Sales (RoS) of 4.7% in the quarter. In addition to tougher market conditions, the Q3 sales mix was also impacted by product transitions, for example the all-new ICE and BEV versions of the G-Class, which will be available in major markets in Q4.
The adjusted Return on Sales (RoS) for Mercedes-Benz Vans was below the previous year with 13.5% (Q3 2023: 15%), driven by lower sales and in line with expectations. A healthy sales mix supported by improved product substance partially compensated lower sales volumes. Furthermore, cost improvements continued.
The adjusted EBIT for Mercedes-Benz Mobility decreased to €285 million mainly driven by a lower interest margin (Q3 2023: €363 million). The interest margin was impacted by the interest rate development in a competitive environment. As a result, the adjusted return on equity (RoE) reached 8.9% (Q3 2023: 10.4%).
Outlook
At Mercedes-Benz Cars full-year sales are seen slightly below 2023. Sales in Q4 are expected in the vicinity of Q3. Global Top-End Vehicle (TEV) sales in Q4 are seen with positive momentum supported by availability of the G-Class, the Mercedes-AMG E-Class, Mercedes-AMG GT and the SL. The share of BEV and plug-in hybrid vehicles (xEV’s) is seen between 18% to 19% in 2024.
The guidance for the adjusted return on sales is seen at 7.5% to 8.5%. Mercedes-Benz Vans adjusted RoS is seen in the range between 14% and 15%.
The adjusted return on equity for Mercedes-Benz Mobility is seen in the range of 8.5% to 9.5% for 2024.
Group revenue is seen slightly below the prior year. As communicated on September 19th, Mercedes-Benz Group EBIT and Cash Flow are seen significantly below the prior-year level.
Mercedes-Benz Group |
Q3 2024 |
Q3 2023 |
Change 24/23 |
Q1-Q3 2024 |
Q1-Q3 2023 |
Change 24/23 |
Revenue* |
34,528 |
37,001 |
-6.7% |
107,144 |
112,414 |
-4.7% |
Earnings before interest and taxes (EBIT)* |
2,517 |
4,842 |
-48.0% |
10,417 |
15,334 |
-32.1% |
Net profit/loss* |
1,719 |
3,719 |
-53.8% |
7,806 |
11,371 |
-31.4% |
Free Cash Flow industrial business (FCF)* |
2,394 |
2,347 |
+2.0% |
6,256 |
7,874 |
-20.5% |
Earnings per share (EPS) in EUR |
1.81 |
3.44 |
-47.5% |
7.62 |
10.47 |
-27.2% |
*in millions of € |
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Mercedes-Benz Cars |
Q3 2024 |
Q3 2023 |
Change 24/23 |
Q1-Q3 2024 |
Q1-Q3 2023 |
Change 24/23 |
Sales in units |
503,573 |
510,564 |
-1.4% |
1,463,263 |
1,529,793 |
-4.3% |
- thereof xEV |
87,232 |
102,292 |
-14.7% |
267,372 |
289,900 |
-7.8% |
- thereof BEV |
42,544 |
61,621 |
-31.0% |
135,908 |
174,471 |
-22,1% |
Share of xEV in unit sales in % |
17.3 |
20.0 |
- |
18.3 |
19.0 |
- |
Revenue* |
25,602 |
27,131 |
-5.6% |
78,485 |
83,187 |
-5.7% |
Earnings before interest and taxes (EBIT)* |
1,198 |
3,312 |
-63.8% |
6,410 |
11,312 |
-43.3% |
Adjusted earnings before interest and taxes (EBIT)* |
1,207 |
3,357 |
-64.0% |
6,293 |
11,282 |
-44.2% |
Adjusted return on sales (RoS) in % |
4.7 |
12.4 |
-7.7%pts |
8.0 |
13.6 |
-5.6%pts |
Cash flow before interest and taxes (CFBIT)* |
2,412 |
2,148 |
+12.3% |
6,865 |
8,898 |
-22.8% |
Adjusted cash conversion rate (CCR) |
2.0 |
0.7 |
- |
1.1 |
0.8 |
- |
*in millions of € |
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Mercedes-Benz Vans |
Q3 2024 |
Q3 2023 |
Change 24/23 |
Q1-Q3 2024 |
Q1-Q3 2023 |
Change 24/23 |
Sales in units |
91,063 |
105,083 |
-13.3% |
299,923 |
323,473 |
-7.3% |
- thereof BEV |
4,375 |
6,348 |
-31.1% |
12,564 |
14,972 |
-16.1% |
Share of BEV in unit sales in % |
4.8 |
6.0 |
- |
4.2 |
4.6 |
- |
Revenue* |
4,657 |
4,939 |
-5.7% |
14,324 |
14,677 |
-2.4% |
Earnings before interest and taxes (EBIT)* |
618 |
715 |
-13.6% |
2,381 |
2,283 |
+4.3% |
Adjusted earnings before interest and taxes (EBIT) * |
628 |
743 |
-15.5% |
2,262 |
2,254 |
+0.4% |
Adjusted return on sales (RoS) in % |
13.5 |
15.0 |
-1.5%pts |
15.8 |
15.4 |
+0.4%pts |
Cash flow before interest and taxes (CFBIT)* |
893 |
980 |
-8.9% |
2,127 |
2,167 |
-1.8% |
Adjusted cash conversion rate |
1.5 |
1.4 |
- |
1.0 |
1.0 |
- |
*in millions of € |
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Mercedes-Benz Mobility |
Q3 2024 |
Q3 2023 |
Change 24/23 |
Q1-Q3 2024 |
Q1-Q3 2023 |
Change 24/23 |
Revenue* |
6,007 |
6,302 |
-4.7% |
19,209 |
18,931 |
+1.5% |
New business* |
14,235 |
15,183 |
-6.2% |
43,080 |
45,299 |
-4.9% |
Contract volume (September, 30)* |
134,298 |
133,840 |
+0.3% |
134,298 |
135,027** |
-0.5% |
Earnings before interest and taxes (EBIT)* |
285 |
363 |
-21.5% |
835 |
1,074 |
-22.3% |
Adjusted earnings before interest and taxes (EBIT) * |
285 |
363 |
-21.5% |
835 |
1,350 |
-38.1% |
Return on equity (RoE) in % |
8.9 |
10.4 |
-1.5%pts |
8.6 |
10.3 |
-1.7%pts |
Adjusted return on equity (RoE) in % |
8.9 |
10.4 |
-1.5%pts |
8.6 |
12.9 |
-4.3%pts |
*in millions of € |
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** Year-end figure 2023 |
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Further information on Mercedes-Benz Group AG is available at: media.mercedes-benz.com and group.mercedes-benz.com
Link to press information “Sales figures Q3 2024”: media.mercedes-benz.com/sales
Link to capital market presentation Q3 2024: group.mercedes-benz.com/q3-2024/en
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 negative change in market conditions 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; changes in laws, regulations and government policies (or changes in their interpretation), particularly those relating to vehicle emissions, fuel economy and safety or to ESG reporting (environmental, social or governance topics); price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a shift in consumer preferences towards smaller, lower-margin vehicles; a limited demand for all-electric vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; 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; 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 the current 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. Mercedes-Benz is consistently implementing its strategy to transform itself 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, 22 Nov. 2023), Mercedes-AMG, Mercedes-Maybach 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 2023, the Group had a workforce of around 166,000 and sold around 2.5 million vehicles. Group revenues amounted to €153.2 billion and Group EBIT to €19.7 billion.
