Business is booming for Benz, with the German car maker selling 530,000 cars and almost twice as many electric models as in same period of 2021.
Mercedes-Benz Cars posted more than €2 billion (AUD$3.1bn) in gross profit during the third quarter of 2022, as its return on sales (RoS) almost doubled over the same period last year.
The firm’s adjusted RoS reached 14.5 per cent in Q3 of 2022, a significant improvement on the 8.8 per cent recorded in Q3 of 2021. Mercedes expects this to hold firm between 13 per cent and 15 per cent through Q4, despite the global economic uncertainty.
This was in part attributed to a strong mix of models sold, as well as improved net pricing.
Mercedes-Benz sold some 530,000 cars during Q3 of 2022, an improvement of 38 per cent over the same period in 2021.
This broke down into 79,000 high-end luxury vehicles such as the Mercedes-Benz EQS; 293,000 ‘core’ luxury cars such as the Mercedes-Benz E-Class; and 158,000 ‘entry’ cars, such as the Mercedes-Benz A-Class and those from Smart.
Performance division Mercedes-AMG primarily drove the improvement in high-end sales, improving from 31,000 in Q3 of 2021 to 36,000 in the same period this year. The EQS and EQS SUV launches also played a small role in this growth.
Of note was that Mercedes almost its doubled battery-electric car sales compared with Q3 of 2021, from 19,000 to 37,000.
It was also a strong quarter for Mercedes-Benz Vans, its sales increasing by 18% to 104,000. It made €258 million (AUD$401m) in gross profit.
However, Mercedes-Benz Mobility was less successful, its earnings before interest and tax (EBIT) down 39 per cent compared with Q3 of 2021 to €577 million (AUD$896m).
The value of the new business was also 3% lower than in Q3 of 2021, falling from €14.6bn (AUD$22.7bn) to €14.3bn (AUD$22.2bn).
On the whole, the Mercedes-Benz Group generated €37.7bn (AUD$58.6bn) in revenue during Q3 of 2022 – up 19 per cent over the same period last year.
Its net liquidity was also up, this 11% greater than in Q3 2022, at €23.3bn (AUD$36.2bn).
Free cashflow was maintained at €3bn (AUD$4.7bn).
Through Q4 of 2022, Mercedes aims to grow its electric and luxury car businesses, continue software development – including advanced driver assistance systems (ADAS) – and mitigate the impact of supply shortages.
The impending sale of the company’s Russian business is also not expected to have a significant impact on its financial positioning in future quarters, said chief financial officer Harald Wilhelm.
The company also aims to establish a “cashflow culture” as it focuses on reducing costs to battle inflation, heightening the importance of transactions in management.
Charlie Martin