Mercedes-Benz Group AG says it has achieved strong financial results in the year 2021 based on preliminary unaudited figures.
The company says the Mercedes-Benz Cars & Vans segment has exceeded the guidance range of 10 to 12% and now expects an adjusted Return on Sales of 12.7% in the full year.
Despite ongoing semiconductor shortages, the fourth quarter of Mercedes-Benz Cars & Vans showed a strong adjusted Return on Sales of 15.0%, driven, it says, by ‘solid net pricing, good product mix and favourable used car performance’.
The company also said the strong profitability of the car business also translated into a solid industrial free cash flow exceeding the company guidance.
“We continue to execute our strategy at full speed. Our focus on profitable growth and cost discipline combined with a desirable product lineup translated into strong financial performance. As the world’s most valuable luxury car brand we are accelerating toward an all-electric, software-driven future,” said Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG.
Mercedes issued the following figures for the financial year 2021 which it said are preliminary and unaudited:
- Mercedes-Benz Cars & Vans expects an adjusted EBIT in the magnitude of 14.0bn Euros and an adjusted Return on Sales of approximately 12.7%. (previous guidance: 10 to 12%)
- Mercedes-Benz Mobility reached an adjusted EBIT in the magnitude of 3.4bn Euros and an adjusted Return on Equity (RoE) of approximately 22.0%. (previous guidance: 20 to 22%)
- Industrial Free Cash Flow in the new group structure (segment Daimler Trucks & Buses included until December 09th, 2021) is now expected at prior year level, in the vicinity of 8.5bn Euros. (previous guidance: slightly below previous year)
The higher than expected profitability supported the positive cash flow development, while working capital increased at year end mainly due to lower payables.
Mercedes said it expects to have considerable positive effects on Group EBIT in the fourth quarter from deconsolidation due to the spin-off of the Daimler commercial vehicle business.
The company now expects this effect on Group EBIT in the order of magnitude of 9 to 10bn Euros. This one-time EBIT effect has no impact on the Cash Flow and no material impact on taxes. It is the perspective of the management that this pure valuation effect should be excluded from the basis for determining the dividend proposal.
The Annual Results Conference for the financial year 2021 will be on February 24th, 2022. The Annual Report 2021 will be disclosed on March 11th, 2022.
