Financial Results in FY2021 According to its Investor Relations, Mercedes-Benz Group achieved strong financial results for the fiscal year 2021 ended December 31. It means that the company is accelerating […]
Financial Results in FY2021
According to its Investor Relations, Mercedes-Benz Group achieved strong financial results for the fiscal year 2021 ended December 31. It means that the company is accelerating its strategy as a pure-play manufacturer of desirable cars and vans.
Good product mix, solid net pricing, continued cost-discipline and favorable used car performance lifted the adjusted Return on Sales. In fact, Return on Sales for Mercedes-Benz Cars & Vans division is 12.7% in the full year. This number is really impressive because the COVID-19 pandemic and semiconductor supply chain bottlenecks continued to affect the business. What’s more, since 2019 fixed costs at Mercedes-Benz Cars have fallen by 16%. On the other hand, revenue per unit was improved by 26% to an average €49,800 per vehicle.
Mercedes-Benz achieved several technological milestones in 2021. First, it introduced four battery electric vehicles and attained the first internationally valid system approval for Level 3 automated driving. Second, the EQS electric flagship received strong reviews and orders for the vehicle. In fact, they are currently at around 20,000 of which 3,600 came in January 2022. Finally, the company is preparing new electric vehicles this year, including the EQE and EQS SUV.
Comments by the chairman
2021 was a year of strategic progress for Mercedes-Benz. Three numbers illustrate how this transformation is gaining traction.
Top-end vehicle sales rose by 30%, sales of electric cars surged 64%, and our adjusted EBIT increased by 105%. That’s a strong demonstration of the potential of this brand and this team. I want to extend my deepest gratitude to all our colleagues who made this excellent result possible.
With a clear agenda for this year, we are confident about 2022. Aside from the relentless focus on cost efficiency and supply chain management, our strategic priorities are. Scaling electric vehicles, accelerating our car-software plans and growing our luxury business.
On February 1, 2022 the previous Daimler AG was renamed Mercedes-Benz Group AG and Daimler Mobility AG became Mercedes-Benz Mobility AG. The former Daimler Trucks & Buses division was listed on the Frankfurt Stock Exchange on December 10, 2021.
Figures within financial statements have therefore been split into continued and discontinued operations. In line with the newly formed Group divisions, the reporting structure and the prior-year figures have been adjusted accordingly.
In the fourth quarter, the company realized a one-time Group EBIT gain of €9.2 billion from deconsolidation, due to the spin-off of the Daimler commercial vehicle business. 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 is a pure valuation effect and has therefore been excluded from the basis for determining the dividend proposal.