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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