Mercedes-Benz Group has reported revenue of €145.6bn ($151.9bn) for full year 2024, marking a 4.5% decrease from the €152.4bn recorded in 2023.
Net profit for the year 2024 also saw a decline, reaching €10.4bn from €14.5bn in 2023.
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In the Q4 2024, the company’s revenue declined by 3.8% year-on-year to €38.4bn, while profit attributable to shareholders of Mercedes-Benz Group dropped by 20.3% to €2,484m.
In the fourth quarter, Mercedes-Benz Cars sold 520,140 units, up 1.1% compared to the year before, while Mercedes-Benz Vans’ sales dropped by 15%, to 105,687 units.
In 2024, the firm’s free cash flow of the industrial business was reported at €9.2bn, down from €11.3bn in the previous year.
Earnings per share (EPS) followed a similar downward trend in 2024, decreasing by 24.3% to €10.19.
The Mercedes-Benz Cars division reported an adjusted EBIT of €8.7bn, a decline from €14.3bn in 2023, primarily due to lower sales volumes, particularly in China, negative net pricing, and an unfavourable model mix.
Mercedes-Benz Vans recorded an adjusted EBIT of €2.8bn, compared to €3.1bn in 2023 while 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 authorisation 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 is aiming to enhance revenue quality, improve efficiency across its global production footprint, and optimise 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 said: “Mercedes-Benz Group delivered solid results in a very challenging environment thanks to a range of outstanding products and strict cost discipline.
“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.”
