Luxury car sales hedge against lack of core Mercedes-Benz returns for the year remained solid

On Friday (February 11), Mercedes-Benz Group AG announced its preliminary financial results for 2021, the first financial report since its name change.

On February 1, Daimler AG officially changed its name to Mercedes-Benz Group, and its subsidiary, Daimler Mobility, will also change its name to Mercedes-Benz Group Mobility AG.

Based on unaudited preliminary figures, Mercedes-Benz's 2021 performance figures are strong and have exceeded previous expectations. The company's EBIT for the full year 2021 was €14 billion, with an adjusted return on sales of 12.7 percent, exceeding the guidance range of 10% to 12%.

Mercedes-Benz Mobility achieved eBIT of €3.4 billion for the full year 2021 and an adjusted return on sales of 22.0 percent, the maximum of the guidance range (20 to 22 percent).

Despite continued semiconductor shortages, Mercedes-Benz's Automotive & Trucks business recorded a strong 15.0% return on sales in the fourth quarter. This is largely driven by solid pricing, a good product mix and favorable performance in the used car market, with strong profitability in the automotive business also reflected in the company's free cash flow, the company said in the report.

Mercedes-Benz prioritizes high-value cars in the face of a shortage of semiconductors, and CEO Ola Kaellenius said the company aims to improve profitability, not just focus on unit sales. "Our strong track record is the result of a sought-after product and a focus on profitable growth and cost control."

Kaellenius also said in a statement: "As the world's most valuable luxury car brand, we are accelerating towards an all-electric, software-driven future. ”