Mercedes-Benz increases its profits by almost 30 % due to price increases

The sale of luxury cars, coupled with the increase in prices, gives the German car manufacturer Mercedes-Benz a profit of 30 %

The German car manufacturer Mercedes-Benz increased its profits by almost 30 % in 2022 thanks to the sale of luxury models and the rise in prices, the firm said today.

The company announced a consolidated result of 14,800 million euros (about 15,823 million dollars). In 2021, a special profit of 1 billion euros due to the spin-off of Daimler’s truck business had brought the group’s profit to more than 23 billion euros.

Mercedes-Benz obtained in 2022 a revenue of 150,000 million euros, with a year-on-year increase of 12 %. The company delivered slightly fewer cars to end customers, but around 5 % more vehicles to wholesale customers (2.04 million).

Sales of top models such as the S-Class, cars from tuning subsidiary AMG and luxury brand Maybach picked up, bringing higher profits.

Thus, the ebitda (earnings before interest and taxes, adjusted for special effects) stood at 20,660 million euros, with a year-on-year increase of 20 %.

For 2023, the management foresees lower benefits in the most important areas. On the one hand, he expects prices to rise, and on the other, he estimates that the business of used models will decrease. Mercedes-Benz indicated that the forecasts as a whole are subject to exceptional uncertainty. He added that for this year he expects the group’s sales to be at the level of the previous year.

Source: dpa

(Reference image source: Tommy, Unsplash)

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