Mercedes-Benz Group has reported a revenue of €145.6bn ($151.9bn) for the full year of 2024, marking a 4.5% decrease from the previous year. The net profit for the year also saw a decline, reaching €10.4bn from €14.5bn in 2023.
In the fourth quarter of 2024, the company’s revenue declined by 3.8% year-on-year to €38.4bn, while the profit attributable to shareholders of Mercedes-Benz Group dropped by 20.3% to €2,484m.
Mercedes-Benz Cars division sold 520,140 units in the fourth quarter, an increase of 1.1% compared to the previous year. However, Mercedes-Benz Vans’ sales dropped by 15% to 105,687 units.
The firm’s free cash flow of the industrial business was reported at €9.2bn in 2024, down from €11.3bn in the previous year. Earnings per share (EPS) also decreased by 24.3% to €10.19 in 2024.
Mercedes-Benz Cars division reported an adjusted EBIT of €8.7bn, a decline from €14.3bn in 2023, primarily due to lower sales volumes, negative net pricing, and an unfavourable model mix. Mercedes-Benz Vans recorded an adjusted EBIT of €2.8bn, compared to €3.1bn in 2023.
Mercedes-Benz Mobility, which provides financial services for the group’s vehicle divisions, maintained a strong presence with a total portfolio of €138.1bn, up from €135bn in 2023.
The company has announced plans to repurchase up to €5bn of its own shares over a 24-month period, subject to renewal of the necessary authorization at the Annual General Meeting in May 2025.
Looking ahead, Mercedes-Benz anticipates group revenue in 2025 to be slightly below the prior-year level, with group EBIT expected to decline significantly. The company’s product roadmap includes several key launches starting in 2025, beginning with the CLA model.
As part of its strategic plan, known as Next Level Performance, Mercedes-Benz aims to enhance revenue quality, improve efficiency across its global production footprint, and optimize cost structures. The company has set a target to reduce production costs by 10% by 2027 through closer collaboration with suppliers and ongoing fixed-cost reductions.
Mercedes-Benz also intends to implement a unified technology platform across its portfolio, integrating infotainment and Advanced Driver Assistance Systems (ADAS) to provide a consistent user experience.
Mercedes-Benz Group CEO Ola Kaellenius stated, “To ensure the company’s future competitiveness in an increasingly uncertain world, we are taking steps to make the company leaner, faster, and stronger, while readying an intense product launch campaign for multiple new vehicles starting with the all-new CLA.”
