25
Ottobre
2024
|
09:19
Europe/Amsterdam

Mercedes-Benz Q3 profitability impacted by market dynamics while preserving solid cash generation

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Neue Beschilderung in der Zentrale der Mercedes-Benz Group AG in Stuttgart-Untertürkheim New Signage at the Headquarters of Mercedes-Benz Group AG in Stuttgart-Untertürkheim, Germany
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• Performance: Solid sales for Mercedes-Benz Cars and Vans. Mercedes-Benz Cars profitability 
impacted by subdued macro environment and fierce competition. Mercedes-Benz Vans continued to 
deliver good results. Mercedes-Benz Mobility navigated challenging market conditions. 
• Capital Allocation: Strong cash generation continued. Share buyback cash outs reach €4.3 billion 
year-to-date. 
• Outlook: Group outlook on EBIT and Free Cash Flow remains in line with September 19th update.

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%).