Mercedes-Benz Group AG reported first-quarter 2023 results with revenue up 8% to €37.5 billion (Q1 2022: €34.9 billion) and adjusted EBIT to €5.4 billion (Q1 2022: €5.3 billion), resulting in six consecutive quarters of double-digit margins.
Together with higher sales, as well as a favorable product mix, it resulted in Earnings Before Interest and Taxes (EBIT) of €5.5 billion (Q1 2022: €5.2 billion).
Strong sales of G-Class, Mercedes-AMG and Mercedes-Maybach vehicles helped Mercedes-Benz Cars to achieve an adjusted Return on Sales of 14.8%.
At Mercedes-Benz Vans the adjusted Return on Sales reached 15.6%, boosted by improved pricing and deliveries of large vans.
The shift towards greater electrification continues, with sales of Battery Electric Vehicles at Mercedes-Benz Cars up 89% and rising 22% at Mercedes-Benz Vans.
The Mercedes-Maybach EQS SUV, an all-electric Top-End vehicle, was presented at Auto Shanghai 2023 following the introduction of a plug-in hybrid version of the Mercedes-Maybach, the S 580 e² earlier in the year.
With the Mercedes-Maybach EQS SUV, the company presented an EQ model tailor-made for delivering further growth in China and the U.S.
In the first quarter, the company also presented its strategy for MB.OS, its proprietary software operating system.
The free cash flow of the industrial business increased to €2.2 billion (Q1 2022: €1.2 billion). The net liquidity of the industrial business rose to €28.9 billion (end of 2022: €26.6 billion).
The Group’s investments in property, plant and equipment in the first quarter totaled €0.8 billion (Q1 2022: €0.9 billion). Research and development expenditure amounted to €2.5 billion (Q1 2022: €2.0 billion) due to higher investments for future platforms and technologies, including MB.OS.
In February 2023, the Board of Management and the Supervisory Board of Mercedes-Benz Group AG resolved to conduct a share buyback program.
Beginning in March 2023, own shares worth up to €4 billion (not including incidental costs) are intended to be acquired on the stock exchange over a period of up to two years and shall subsequently be cancelled.
As of this week, Mercedes-Benz successfully transferred its Russian business activities to Avtodom, a step which had no significant effects on profitability and cash flows.
For Mercedes-Benz Mobility the company expects a loss in the low triple-digit million euros range, once the sale becomes effective. No significant effects are expected on liquidity and capital resources.
