Mercedes-Benz Group AG reported robust sales in the third quarter despite navigating product transitions, a tough market, and intense competition, particularly in China. Free cash flow from the industrial business reached €2.39 billion for Q3, slightly up from €2.35 billion in the same period last year, aided by favorable working capital developments. Net liquidity increased to €28.73 billion compared to €28.49 billion in Q3 2023, as noted by CFO Harald Wilhelm.
Divisional Results
Mercedes-Benz Cars faced challenges due to weaker macroeconomic conditions and fierce competition in Asia, resulting in adjusted EBIT of €1.2 billion, a significant drop from €3.4 billion in Q3 2023. The softer net pricing and unfavorable sales mix led to an adjusted Return on Sales (RoS) of 4.7%. Product transitions, including the introduction of new ICE and BEV versions of the G-Class, also impacted the sales mix, with full availability expected in Q4.
Mercedes-Benz Vans saw adjusted RoS decline to 13.5%, down from 15% in Q3 2023, primarily due to lower sales. However, a favorable sales mix helped mitigate the impact. Cost improvements continued, supporting operational performance.
Mercedes-Benz Mobility reported adjusted EBIT of €285 million, down from €363 million in Q3 2023, largely due to reduced interest margins amid a competitive landscape. The adjusted Return on Equity (RoE) stood at 8.9%, down from 10.4% last year.
Outlook
For Mercedes-Benz Cars, full-year sales are projected to be slightly lower than in 2023, with Q4 sales expected to be on par with Q3. Positive momentum in Global Top-End Vehicle (TEV) sales is anticipated, bolstered by the availability of the G-Class and Mercedes-AMG models. The share of BEV and plug-in hybrid vehicles (xEVs) is projected to be between 18% and 19% in 2024.
The guidance for adjusted Return on Sales is set at 7.5% to 8.5%, while the adjusted RoS for Mercedes-Benz Vans is expected to range between 14% and 15%. The adjusted RoE for Mercedes-Benz Mobility is forecasted at 8.5% to 9.5% for 2024.
Financial Summary
Group Performance (Q3 2024 vs. Q3 2023)
- Revenue: €34,528 million (down 6.7%)
- EBIT: €2,517 million (down 48.0%)
- Net Profit: €1,719 million (down 53.8%)
- Free Cash Flow: €2,394 million (up 2.0%)
- Earnings per Share: €1.81 (down 47.5%)
Mercedes-Benz Cars Performance (Q3 2024 vs. Q3 2023)
- Sales Units: 503,573 (down 1.4%)
- Revenue: €25,602 million (down 5.6%)
- Adjusted EBIT: €1,207 million (down 64.0%)
- Adjusted RoS: 4.7% (down 7.7 percentage points)
Mercedes-Benz Vans Performance (Q3 2024 vs. Q3 2023)
- Sales Units: 91,063 (down 13.3%)
- Revenue: €4,657 million (down 5.7%)
- Adjusted EBIT: €628 million (down 15.5%)
- Adjusted RoS: 13.5% (down 1.5 percentage points)
Mercedes-Benz Mobility Performance (Q3 2024 vs. Q3 2023)
- Revenue: €6,007 million (down 4.7%)
- EBIT: €285 million (down 21.5%)
- Adjusted RoE: 8.9% (down 1.5 percentage points)
Despite the challenges, Mercedes-Benz Group AG remains committed to maintaining solid cash flow while adapting to market dynamics and evolving product lines.
