Mercedes-Benz Group Ag ( (MBGAF) ) has released its Q4 earnings. Here is a breakdown of the information Mercedes-Benz Group Ag presented to its investors.
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Mercedes-Benz Group AG, a leading global supplier of high-end passenger cars and premium vans, is recognized for its focus on innovative and green technologies, with a commitment to a fully electric and software-driven future.
In its latest earnings report, Mercedes-Benz Group AG reported solid financial results for 2024 while launching a multi-year strategic plan, called ‘Next Level Performance’, aimed at enhancing product and performance to maintain resilience in challenging markets.
Key financial metrics from the report indicate a decrease in revenue and earnings before interest and taxes (EBIT) compared to the previous year. Group revenue stood at €145.6 billion, a 4.5% decline, while EBIT was €13.6 billion, reflecting a 30.8% decrease. The company also reported a free cash flow of €9.2 billion, demonstrating strong cash generation. Mercedes-Benz introduced a dividend proposal of €4.30 per share and a new share buyback program up to €5 billion subject to approval.
The company’s strategic announcements include a roadmap for profitable growth through significant cost reductions and efficiency improvements. Mercedes-Benz plans to launch multiple new vehicles, including an all-new CLA and upgraded S-Class, while enhancing its sales channels and customer experiences. The company also aims to improve its production efficiency by reducing costs by 10% by 2027.
Looking ahead, Mercedes-Benz Group AG anticipates a slight decrease in group revenue for 2025, with EBIT and free cash flow expected to fall significantly below the strong levels of 2024. The company remains committed to innovation and efficiency as it adapts to the evolving automotive market landscape.
