Mercedes-Benz Group Q2 results underscore solid financial performance

Mercedes-Benz Group AG (ticker symbol: MBG) achieved solid second-quarter results with Group Earnings Before Interest and Taxes (EBIT) of €4.0 billion (Q2 2023: €5.0 billion) supported by operational efficiency and a focus on healthy sales of cars and vans in a challenging environment. The adjusted Return on Sales (RoS) at Mercedes-Benz Cars reached 10.2% (Q2 2023: 13.5%) and 17.5% (Q2 2023: 15.5%) at Mercedes-Benz Vans. Group revenue reached €36.7 billion (Q2 2023: €38.2 billion) in the quarter.

“Thanks to our desirable passenger cars and vans, Mercedes-Benz achieved double-digit margins in a challenging environment. Going forward, we continue to invest in cutting-edge products while fostering our financial resilience. Sales and the model mix are expected to improve in the second half of the year, supported by further market launches of new models particularly in the Top-End segment.”

Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG

*in millions of €

Investments, free cash flow, net liquidity

The free cash flow from the industrial business in the second quarter reached €1.6 billion (Q2 2023: €3.4 billion) due to the solid cash conversion rate at cars and vans. This was influenced by lower Earnings Before Interest and Taxes (EBIT) and headwinds in working capital development due to higher inventory levels ahead of the expected higher H2 sales. The net liquidity from the industrial business reached €28.0 billion (end of 2023: €31.7 billion) due to the dividend payment of €5.5 billion and cash outs for share buybacks of approximately €2.8 billion in the second quarter. Since the beginning of the buyback programmes in March 2023, the company has bought back shares for €5.1 billion as of end June 30, 2024. The Group’s investments in property, plant and equipment in the second quarter totalled €0.9 billion (Q2 2023: €0.8 billion). Research and development expenditure fell to €2.3 billion (Q2 2023: €2.4 billion).

 Divisional results

Adjusted Earnings Before Interest and Taxes (EBIT) at Mercedes-Benz Cars reached €2.8 billion (Q2 2023:

€3.8 billion) on lower sales volumes but resulted in an adjusted Return on Sales (RoS) of 10.2%, up from 9.0% in the first quarter, (Q2 2023: 13.5%) due to a focus on sales quality in a challenging environment and due to favourable material costs. Mercedes-Benz Cars unit sales reached 496,712 units in the second quarter, a plus of 7% compared to the first quarter due to improved product availability in China and the United States. Top- End Q2 sales increased by 6% compared to Q1, but remain below year-earlier levels, mainly due to model changeovers and a subdued market environment in Asia. The availability of Top-End models continues to improve with the all-new electric G-Class1 launched. Sales of the AMG CLE53, AMG E53 and AMG GLC43 models started in the second quarter. Furthermore, the Mercedes-Benz S-Class remains the undisputed market leader in its segment in all major markets. Sales in the Core segment rose by 8% in Q2 compared to previous quarter mainly driven by the E-Class and GLC, the latter of which has retained its status as the top- selling model.

*in millions of €

The adjusted Return on Sales (RoS) for Mercedes-Benz Vans rose to 17.5% (Q2 2023: 15.5%). The lower unit sales were outweighed by healthy net pricing, and a favourable structure, as well as favourable material costs and positive foreign exchange effects. Adjusted Earnings Before Interest and Taxes (EBIT) increased by 5% to

€834 million (Q2 2023: €792 million). Mercedes-Benz Vans global sales reached 103,435 units in the second quarter maintaining sales at the same level as in the first quarter (-2% compared to Q1). Thus, the division achieved a strong first half-year in 2024, with Q2 influenced by model changes both in the private and commercial segment of midsize and large vans and a phased ramp up of the eSprinter.

*in millions of €