July 27, 2023 – Group EBIT now seen “at” prior-year level; Free cash flow of the industrial business is now expected “slightly above” the prior-year level; Mercedes-Benz Vans sales now seen “significantly above” the prior-year level and adjusted Return on Sales (RoS) now expected in the range of 13%–15% up from 11%–13% previously.
With regional differences, the overall growth momentum of the world economy is likely to remain rather subdued in the second half of the year. Despite an ongoing monthly decrease in the rate of inflation, inflation is expected to remain above average in many places, which is likely to result in continued restrictive monetary policies by major central banks. These developments are likely to continue to weigh on consumers, companies and weaken economic growth accordingly. In addition, geopolitical imponderables remain another uncertainty factor. By contrast, energy prices are expected to remain at a significantly lower level than in the previous year for the rest of 2023 and also on average for the year as a whole. The noticeably improved supply chain situation should continue to benefit the development of automotive markets in the second half of the year, although market demand is expected to remain subdued in important markets.
Sales Guidance Mercedes-Benz Cars: Order intake is stabilizing with a strong product substance in the market and also considering the product launches to come in 2023 and in 2024. The rate of sales from first-half 2023 is seen remaining at approximately the same level, and full-year sales are thus seen at prior-year level.
Unit sales and revenue at Mercedes-Benz Cars are seen at the prior-year level. The adjusted RoS is seen at 12%–14% and the adjusted Cash Conversion Rate at 0.8–1.0. Investments in property, plant and equipment and into research and development are seen significantly above the prior-year level.
At Mercedes-Benz Vans, unit sales are now seen at “significantly above” the prior-year's level, up from the previous expectation of a slight rise in sales. The adjusted RoS is now expected in the range of 13%–15% up from 11%–13% previously. The adjusted Cash Conversion Rate is now expected at 0.7–0.9, up from 0.6–0.8 previously. Investments in property, plant and equipment and into research and development are still seen significantly above the prior-year level.
At Mercedes-Benz Mobility the adjusted RoE remains unchanged at 12%–14%.
The Mercedes-Benz Group expects revenue at the prior-year level. Group EBIT is now seen “at prior-year level,” up from “slightly below” resulting from the adjusted Van guidance. Free cash flow of the industrial business is now expected “slightly above” the prior-year level.
This page was revised based on the Q2 Interim Report 2023 and contains forward-looking statements.