The following is a summary of the Mercedes-Benz Group AG (MBGAF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Mercedes-Benz Group experienced a decrease in Q1 sales, EBIT, and EPS, predominantly due to supply chain issues, lower car sales, and product transitioning.

• However, the company delivered a robust cash flow of €32.2 billion and has a net cash position of over €33 billion.

• Earnings per share were buffered by the accretion resulting from share buybacks.

• The return on sales adjusted was lower than anticipated at 9%, driven by lower volume and investment in product life cycle progression.

• Mercedes-Benz Group has announced a new share buyback initiative worth €3 billion that is expected to bring total share buybacks to approximately €7 billion by Q1 2025.

Business Progress:

• Several new models, including electric G cars, upgraded EQS, and E-Class variants of AMG, were launched by Mercedes in Q1 2024.

• Despite sales impacts from supply constraints and market dynamics, circumstances are expected to improve as new products reach the market.

• The company plans to continue investing in cloud infrastructure and remains focused on transitioning from ICE to EVs.

• Following disappointing results for Q1, Mercedes-Benz anticipates improved results in Q2, with increased volume and opportunities in the material cost sector.

• The company also maintains a steadfast commitment to improved efficiency in supply chains and operations, intending to extract more value to reduce material costs and drive gains in efficiency.

More details: MERCEDES-BENZ GROUP AG IR

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