Mercedes-Benz posts robust Q3 profit in a demanding environment
Despite a volatile market environment revenue was significantly above the previous year at €37,716 million in the third quarter of 2022 (Q3 2021: €31,647 million).
The increase in revenue was primarily due to significantly increased unit sales and substantial improvement in net pricing at the Mercedes-Benz Cars and Mercedes-Benz Vans segments. The increase in the cost of sales compared to the prior-year quarter, essentially resulted from higher raw material prices and one-off expenses to suppliers for additional costs related to inflation or the supply chain.
The other functional costs were slightly above the level of the same quarter of the previous year. The decrease in other operating income/expense in the third quarter of 2022 was primarily due to expenses resulting from the fair value measurement as well as the sale of operating investments and business operations of the commercial vehicle business of the MercedesBenz Mobility segment.
In particular, the higher proportional contribution of the investment in Beijing Benz Automotive Co., Ltd. (BBAC) led to a significant increase in the profit from equitymethod investments. The other financial income/expense improved compared to the prior-year quarter due to the subsequent measurement at fair value of Chargepoint Inc.
EBIT was €5,196 million in the third quarter of 2022 and was thus also significantly above the level of the same quarter of the previous year (Q3 2021: €2,838 million).
The income tax expense recognized in the third quarter of 2022 amounted to €1,168 million (Q3 2021: €855 million). The tax rate was 22.6% (Q3 2021: 30.3%). In the third quarter of 2022, the ongoing reassessment of nontax deductible expenses led to an adjustment of the
effective tax rate.
Profit from continuing operations of €3,998 million in the third quarter of 2022 was significantly higher than in the same quarter of the previous year (Q3 2021: €1,964 million).
In the same quarter of the previous year the profit from discontinued operations, after taxes of €609 million included the income and expenses in connection with the assets and liabilities of the former Daimler Trucks & Buses segment.
Net profit for the third quarter 2022 thus amounted to €3,998 million (Q3 2021: €2,573 million). Net profit of €75 million is attributable to non-controlling interests (Q3 2021: €103 million).
The net profit attributable to the shareholders of Mercedes-Benz Group AG amounted to €3,923 million (Q3 2021: €2,470 million). This led to an increase in earnings per share to €3.66 (Q3 2021: €2.31).