Mercedes-Benz net profit drops to 3.9 billion Euro in Q1

Mercedes-Benz Group AG reported Earnings Before Interest and Taxes (EBIT) of 3.9 billion Euro in the first quarter of 2024 (Q1 2023: 5.5 billion Euro), reflecting “lower raw material prices, and tight cost control”, a release shows. Group revenue came in at 35.9 billion Euro (Q1 2023: 37.5 billion Euro).  

Earnings Before Interest and Taxes at Mercedes-Benz Cars reached 2.5 billion Euro (Q1 2023: 4.1 billion Euro) and resulted in an adjusted Return on Sales of 9.0% (Q1 2023: 14.8%) mainly due to a temporary decline in volumes and model transitions in the Top-End segment as well as higher lifecycle management costs to keep products at the cutting edge. Top-End vehicles were constrained by model changeovers of the G-Class as well as the Mercedes-AMG derivatives of the E-Class and GLC, as well as supply-chain bottlenecks.

Mercedes-Benz Cars sales reached 463,000 units (-8%) in the first quarter, with solid results in all regions except Asia. Despite a decline in S-Class sales, it remains the undisputed leader in all key regions. 

Overall, pricing remained at a high level in Q1. Sales are expected to increase in the coming quarters with the Top-End vehicle mix expected to improve in the second half of the year. The EV adoption rate has slowed across the industry. In the transition from ICE to BEV vehicles, Mercedes-Benz plug-in hybrids are expected to play an important role. In Q1 Mercedes-Benz initiated BEAT26, an efficiency program to lower material costs in procurement, in close collaboration with its suppliers.