Mercedes-Benz Net Profit Jumped To Ksh.1.9 Trillion In 2022

Mercedes-Benz, a renowned automaker based in Stuttgart, has announced an enormous leap in profits for the year 2022, driven by a significant increase in demand for top-tier and electric models. However, the company has also sounded an alarm for a sluggish start to the new year in Europe due to various factors affecting the global economy.

According to the company's statement, the net profit for the previous year has soared by a staggering 34%, amounting to a whopping €14.8 billion ($15.7 billion or Ksh.1.9 trillion). Furthermore, the revenues have witnessed a healthy 12% year-on-year increase, with total revenue amounting to €150 billion.

Mercedes-Benz has attributed its remarkable earnings boost to a "sharpened focus" on producing luxury cars and vans with high-profit margins, coupled with a strong emphasis on cost management.

The automaker has recorded more than two million car sales in 2022, representing a 5% increase from the previous year. The surge in demand has primarily come from the all-electric EQS and the S-Class model.

Despite a robust performance last year, Mercedes-Benz has raised concerns over the future, warning of an "exceptional degree of uncertainty" in the global economy due to various geopolitical events and the ongoing COVID-19 pandemic. The company has also reported that incoming orders in Europe are comparatively slower.

While the United States is currently experiencing a good level of demand, the COVID-19 pandemic has had a spill-over effect on sentiment in China. In light of these challenges, Mercedes-Benz expects revenues to remain stable in 2023, but pre-tax profits are likely to be "slightly below" the previous year's level.