Mercedes Benz Q1 Report 2024

Group Earnings Before Interest and Taxes (EBIT) totalled €3.9 billion (Q1 2023: €5.5 billion), reflecting lower raw material prices, tight cost control and a strong performance at Mercedes-Benz Vans. These effects partially offset lower sales at Mercedes-Benz Cars where supplier bottlenecks and model changeovers in the Top-End segment also led to a less favourable model mix. Group revenue came in at €35.9 billion (Q1 2023: €37.5 billion).

The Free Cash Flow from the Industrial Business in the first quarter reached €2.23 billion (Q1 2023: €2.16 billion), supported by an adjusted Cash Conversion rate of 1.0 at Mercedes-Benz Cars. The Net Liquidity from the Industrial Business rose by 6% to a strong and very comfortable level of €33.6 billion (end of 2023: €31.7 billion). This included a share buyback of approximately €300 million in the first quarter. The Group’s investments in property, plant and equipment in the first quarter totalled €0.7 billion (Q1 2023: €0.8 billion). Research and development expenditure fell to €2.2 billion (Q1 2023: €2.5 billion).

Net interest income/expense improved in the first quarter of 2024, in particular as a result of higher interest income in connection with the global increase in interest rates, to €166 million (Q1 2023: €65 million).

The income tax expense recognized in the first quarter of 2024 amounted to €1,004 million (Q1 2023: €1,558 million). The tax rate was 24.9% (Q1 2023: 28.0%). The slight decrease of the effective tax rate is mainly due to the new assessment of tax risks.