Mercedes-Benz Group AG’s sharpened focus on high-end passenger cars and premium vans, combined with tight cost control, helped to lift Earnings Before Interest and Taxes (EBIT) by 28% to €20.5 billion (2021: €16.0 billion) last year, outpacing a 12% rise in revenue to €150.0 billion (2021: €133.9 billion) during the same period.
In its first year after the Daimler Truck spin-off, Mercedes-Benz Group continued its transformation amid geopolitical and macroeconomic challenges. Strong results underline the improved profitability, even as the COVID-19 pandemic and semiconductor supply-chain bottlenecks and the fallout from Russia’s war against Ukraine continued to affect the business.
”We have redesigned Mercedes-Benz to be a more profitable company thanks to our focus on desirable products and disciplined margin and cost management. We cannot control macro or world events, but 2022 is a case in point that we are moving in the right direction”, said Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG.
“In addition to delivering strong financial results, the team accelerated our pace as a technology leader in electric and automated driving. The next chapter in our transformation will be revealed during the Mercedes-Benz Strategy Update in California on February 22 focusing on the Mercedes-Benz Operating System (MB.OS).“
Mercedes-Benz expanded its offering of battery electric vehicles to 9 cars and 4 vans, including the new EQS SUV and EQE SUV and most recently unveiled a new eSprinter. To scale manufacturing of zero-emission vehicles, the Mercedes-Benz cars and vans production network was retooled, and new deals with suppliers were struck. Mercedes-Benz will source battery cells from a new factory built by Contemporary Amperex Technology Co., Ltd (CATL) in Debrecen, Hungary.
At the Annual General Meeting on May 3, 2023, the Board of Management and the Supervisory Board will propose a dividend of €5.20 per share (2021: €5.00). For 2022 the total payout would amount to €5.6 billion (2021: €5.35 billion).
To optimise the company’s capital structure and to create value for shareholders, Mercedes-Benz announced a share buyback to repurchase own shares worth up to € 4 billion (not including incidental costs) on the stock exchange over a period of up to two years. The repurchased shares shall subsequently be cancelled. On the back of strong operating performance and continued strong cash generation the programme is scheduled to start in March 2023. The buyback will be funded by Mercedes-Benz’s expected future excess free cash flow and is fully compatible with the company’s strategic priorities and its dividend policy. Mercedes-Benz remains committed to a strong investment grade credit rating and targets an A rating by the major agencies. Further details on the share buyback programme will be announced separately prior to the start of the programme.
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