Mercedes-Benz Q1 results driven by Top-End cars and premium vans

Stuttgart (Germany)-Mercedes-Benz Group AG (ticker symbol: MBG) achieved healthy first quarter financial results thanks to a rise in sales of Top-End vehicles and premium vans. Improved pricing outweighed headwinds from material costs.

* Solid performance despite macro uncertainty: Q1 Group EBIT up 5% to EUR5.5 billion (Q1 2022: EUR5.2 billion) as Group revenue rose 8% to EUR37.5 billion (Q1 2022: EUR34.9 billion)

* Resilience underlined by healthy profitability: Mercedes-Benz Cars adjusted Return on Sales (RoS) reaches 14.8% (Q1 2022: 16.4%), 15.6% for Mercedes-Benz Vans (Q1 2022: 12.6%), and an adjusted Return on Equity (RoE) of 15.6% for Mercedes-Benz Mobility (Q1 2022: 20.2%)

* Strategy execution on track: Significant Top-End sales increase, Mercedes-Benz Cars BEV sales nearly doubled, new Mercedes-Benz Maybach EQS SUV[1] unveiled, precursor of MB.OS shown in new E-Class

* Outlook: Group outlook remains unchanged. Mercedes-Benz Vans adjusted RoS lifted to 11%-13% and at Mercedes-Benz Cars the adjusted RoS is seen at the upper end of 12%-14%

Together with higher sales, as well as a favorable product mix, it resulted in Earnings Before Interest and Taxes (EBIT) of EUR5.5 billion (Q1 2022: EUR5.2 billion). First-quarter revenue increased 8% to EUR37.5 billion (Q1 2022: EUR34.9 billion) and adjusted EBIT rose to EUR5.4 billion (Q1 2022: EUR5.3 billion). Six consecutive quarters of delivering double-digit margins demonstrate resilience and a structurally uplifted business performance.

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.

'Our focus on Top-End cars and premium vans has made Mercedes-Benz more weatherproof, allowing us to accelerate our digital and electric transformation - even in a period of economic uncertainty. Ongoing cost discipline, combined with further key product launches like the all-electric Mercedes-Maybach EQS SUV [1] will keep us on track to continue delivering sustainable results.'

Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG

Mercedes-Benz continues to transform at full speed towards an all-electric software-driven future. The Mercedes-Maybach EQS SUV [1], 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 e[2] earlier in the year. With the Mercedes-Maybach EQS SUV [1], 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. As part of its ESG efforts to make Mercedes-Benz a more sustainable company, a groundbreaking ceremony for a battery recycling plant was held in Kuppenheim, Germany and Mercedes-Benz signed a 140 megawatts Power Purchase Agreement (PPA) with Iberdrola to access green energy for production. The company's Green Finance Framework was also expanded to include green asset backed securities.

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