Despite the dual impact of chip shortages and the epidemic, Mercedes-Benz Group still handed over a very gold-rich answer sheet in 2021.
On the afternoon of February 24, Mercedes-Benz Group AG (hereinafter referred to as Mercedes-Benz) released its first financial year report after the official name change - the 2021 financial performance report.
According to the financial report, the operating income of Mercedes-Benz Group in 2021 was 167.971 billion euros, an increase of 9% year-on-year, and the pre-tax profit was 29.069 billion euros, an increase of 340% year-on-year. Among them, the Adjusted Sales Margin of the Mercedes-Benz Passenger Cars and Light Commercial Vehicles segment for the full year reached 12.7%.
In addition, this financial report also revealed several information points worth paying attention to.
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Profit: Mercedes-Benz has reached its peak in recent years
For its performance in 2021, Mercedes-Benz commented on it: "a year of mercedes-Benz strategic progress".
As an important part of the strategic progress, Mercedes-Benz's profit margin in 2021 is full of gold.
According to the financial report, in 2021, the financial data of the Mercedes-Benz Group for the whole year, excluding the already separate Daimler Trucks and Buses business segment, achieved operating income of 133.9 billion euros (2020: 121.8 billion euros), adjusted EBIT of 19.2 billion euros (2020: 8.6 billion euros), group net profit of 11.1 billion euros (2020: 4 billion euros), and group-level EBIT increased by 123%.
In terms of the vehicle business (Mercedes-Benz passenger cars and light commercial vehicles) alone, the total turnover in 2021 was 109.648 billion euros (2020: 98.576 billion euros), an increase of 11% year-on-year. Adjusted EBITDA was EUR 13,914 million (2020: EUR 6,802 million) increased by 105% year-on-year and adjusted earnings margin was 12.7% (2020: 5.2%).
According to the data, from 2015 to 2019, Daimler Group's EBIT was 13.5 billion euros, 12.9 billion euros, 14.7 billion euros, 11.1 billion euros, 4.3 billion euros (adjusted 10.3 billion euros), plus the 8.6 billion euros in 2020 mentioned above, from the perspective of pre-tax profit, Mercedes-Benz Automobile has exceeded the same level in operating performance at its peak in 2017; and from its sales margin of 12.7%, Mercedes-Benz has also created the best performance in history.
As we all know, 2021 is facing severe challenges for global car companies, and the biggest reason why Mercedes-Benz can achieve such results in profit margins is its success in product layout.
02
Product: Mercedes-Benz core gold content
The data shows that due to the global semiconductor supply shortage, mercedes-Benz passenger cars and light commercial vehicles sold a total of 2,330,169 units in fiscal 2021, down 5% year-on-year; mercedes-Benz passenger car sales fell to 2,054,962 units, compared with 2,164,187 units in 2020.
This means that from the sales figures of the whole line, Mercedes-Benz is on a downward trend in 2021. However, it is worth mentioning that high-end car series including Mercedes-Maybach, Mercedes-AMG, G-Class, S-Class Sedan, GLS SUVs and EQS set new sales records in 2021.
According to the financial report data, since 2019, the fixed cost of Mercedes-Benz's passenger car business segment has decreased by 16%, while the turnover of bicycles has increased by 26%, with an average of 49,800 euros per vehicle, reducing costs and increasing profits, and Mercedes-Benz has achieved a new height of gold content of the brand in 2021.
Secondly, in 2021, Mercedes-Benz launched a total of 4 pure electric models and won the world's first conditional autonomous driving (L3) system certification. Among them, the flagship luxury pure electric model EQS is widely acclaimed, and the model has currently received orders for about 20,000 units, including about 3,600 units in January 2022. At the same time, Mercedes-Benz light commercial vehicles also continued to promote the electrification strategy, and the sales of pure electric models increased by more than doubled year-on-year.
In fact, this is closely related to the strategic adjustment of Mercedes-Benz.
In October 2020, Mercedes-Benz announced a new strategy based on global market changes, industrial change trends, competitive advantages of enterprises, and the need for continuous development. The strategy designs six areas, with the first being "Re-focusing on Luxury Positioning", making luxury an integral part of products, customer interactions and digital technologies.
At the time, Conlinson, chairman of the board of directors of Daimler AG and chairman of the board of directors of Mercedes-Benz AG, said that Mercedes-Benz's goal would be to change from sales growth to profitable growth and create the world's most desirable automotive products.
More than a year later, the sales structure of Mercedes-Benz in 2021 is gradually reflecting the correctness of its strategic adjustment. This means that Mercedes-Benz in 2021 is experiencing an increase from sales growth to profit growth, from quantitative change to qualitative change. In terms of gold content, Mercedes-Benz is embarking on a new historical road, and one of the indispensable keywords is China.
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China: Mercedes-Benz is at the forefront
The Chinese market remains one of Mercedes-Benz's most important markets.
According to the financial report, the cumulative sales of Mercedes-Benz passenger cars in 2021 were 734,700 units, down 3% from the same period last year, and the cumulative sales of commercial vehicles were 38,500 units, an increase of 26% year-on-year, accounting for nearly one-third of Mercedes-Benz's total global sales.
Among them, the cumulative sales of domestic models were 561,000 units, down 8.18% year-on-year, and the cumulative sales of imported models were 174,000 units, an increase of 18.37% over the same period last year; and the improvement of Mercedes-Benz's profit margin in the global brand is closely related to The performance of Mercedes-Benz in the Chinese market.
According to the data, since June last year, in addition to the impact of supply shortages in October, Mercedes-Maybach's monthly sales in China have increased to more than 1,000 vehicles, up 50.7%; Mercedes-Benz G-Class sales reached 41,174 units, setting a record for mercedes-Benz G-class delivery; at the same time, in 2021, Mercedes-Benz achieved operating income of 25.4 billion euros in the Chinese market, an increase of 19% over the same period last year. In the German market, Mercedes-Benz achieved operating income of 24.4 billion euros, down 3% year-on-year, and the US market achieved operating income of 41.8 billion euros, an increase of 10% over the same period last year.
This also reflects the position of the Chinese market in the global market. It is understood that 2022 will become a key year for Mercedes-Benz's transformation in China, and the most obvious sign is the power in the direction of electrification.
In 2022, the EQE model based on the pure electric large vehicle platform EVA will be launched in the Chinese market; in addition, seven Mercedes-Benz new energy models will enter China this year. In 2022, Mercedes-Benz will offer electric models for all segments it serves, including the Maybach brand, AMG brand and G-Class, which will usher in the era of electrification.
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Conclusion
For car companies, the significance of 2021 is not only full of challenges, but also a perfect time to reflect the wisdom of enterprises, and Mercedes-Benz once again showed the confidence and strength of a century-old car company in this year.
In the coming years, the transformation of the industry will continue. For car companies, it is imperative to find new growth points.
At present, the improvement of Mercedes-Benz from quantitative change to qualitative change has brought more enlightenment to the entire industry: when everyone is still pursuing sales, those leaders have broken through in advance and seen a new future.