Mercedes-Benz Group revenue decreased 4.4% in Q1 2024, and net profit decreased 24.6% due to the unfavorable economic climate.
Mercedes-Benz Group revenue decreased in Q1 2024 from 37.516 billion euros to 35.873 billion euros, a decrease of 4.4%. Net profit was also down 24.6% from 4.011 billion euros to 3.025 billion euros. Earnings before interest and taxes (EBIT) fell 29.8%, from 5.422 billion euros to 3.598 billion euros.
Mercedes-Benz Cars: profit and sales down
The toughest situation is at Mercedes-Benz Cars, where earnings before interest and taxes (EBIT) fell from 4.148 billion euros in Q1 2023 to 2.456 billion euros in Q1 2024. The Mercedes-Benz Cars division contributed 25.713 billion euros to Mercedes-Benz Group revenues compared to 27.812 billion euros in Q1 2023 (-7.5%). Although Mercedes has increased car prices, the profit margin has decreased due to promotions especially for electric models. Thus, return on sales fell to (9% compared to 14.8% in Q1 2023).
Mercedes explains this dramatic decline by various changes in the top-end segment: the facelift of the G-Class, and the generation change to the AMG versions of the GLC and E-Class. Also, problems with the delivery of components from suppliers caused production delays.
As we wrote here, Mercedes-Benz car sales fell 8% in Q1 2024 to 462,978 units compared to 503,483 units in Q1 2023. Mercedes sales fell in all regions of the world, with the steepest decline in Asia. Sales of electric models also fell 8% from 51,639 to 47,521 units.
Mercedes-Benz Vans: sales and profit up
In contrast, the Mercedes-Benz Vans division saw an increase in profit and sales. Mercedes-Benz Vans sold 105,425 units in Q1 2024 compared to 98,885 in Q1 2023 (+6.6%) and Earnings before interest and taxes (EBIT) increased 22.4% from 762 to 933 million euros. Also, the Mercedes-Benz Cars division’s revenues increased by 6% from 4.615 billion to 4.893 billion euros. In contrast to Mercedes-Benz Cars, return on sales increased at Mercedes-Benz Vans from 15.6% in Q1 2023 to 16.3% in Q1 2024.
The positive result recorded by Mercedes-Benz Vans is mainly due to the 11% increase in sales of commercial vans and to sales growth in China (+27%) and the USA (+15%).
In contrast, sales of electric vans declined due to changes in the EQV and eVito and the generation change in the eSprinter, but are expected to increase in the coming months as these models become available on the market.
| Mercedes-Benz Group | Q1 2024 | Q1 2023 | Change 2024/2023 |
|---|---|---|---|
| Revenue | 35,873 | 37516.000 | -4.40% |
| Earnings before Interest and Taxes (EBIT)* | 3,863 | 5,504 | -29.80% |
| Net profit* | 3,025 | 4,011 | -24.60% |
| Mercedes-Benz Cars | |||
| Sales units | 462,978 | 503,483 | -8.00% |
| Revenue | 25,713 | 27,812 | -7.50% |
| Earnings before Interest and Taxes (EBIT)* | 2,456 | 4,148 | -40.80% |
| Profit margin in % | 9 | 14..8 | -5.8% pts |
| Mercedes-Benz Vans | |||
| Sales in units | 105,425 | 98,885 | +6.6% |
| Revenue* | 4,893 | 4,615 | +6.0% |
| Earnings before Interest and Taxes (EBIT)* | 933 | 762 | +22.4% |
| Profit margin in % | 16.3 | 15.6 | 0.7% pts |
