Companies from Germany recently disclosed their latest quarterly financial results. Among the notable mentions is Mercedes-Benz, ranked as the sixth-largest company in the German DAX index. These disclosures come at a critical time and are expected to influence early trading activities on Tuesday. Market participants and investors will likely pay close attention to these figures as they begin trading on various indices, setting the tone for the day's financial interactions.
On a detailed note, Tuesday saw several major German firms revealing their financial performance for the first quarter. Mercedes-Benz Group AG reported that its revenue for the initial quarter of fiscal year 2024 reached €435.9 billion, marking a 4% decline compared to the same period in 2023. The company's net profit suffered a substantial decrease of 25%, coming in at €3 billion, while its earnings before interest and taxes (EBIT) witnessed a sharper decline of 30%, amounting to €3.9 billion. Additionally, the diluted earnings per share (EPS) for the group was €2.86, reflecting a decrease of 22% from the previous year, indicating a challenging quarter for the automaker.
Mercedes-Benz also noted a significant downturn in its vehicle sales, which totaled 462,978 units in the first three months of 2024. This represents an 8% drop year-over-year, largely attributed to decreased demand in the Chinese market. This decline is critical as China has been a significant market for luxury automakers, and fluctuations in this market can have substantial effects on overall performance.
Adidas AG, another major German company, provided a more positive outlook in its quarterly report. The company announced that its revenue for the first quarter of fiscal 2024 experienced a 4% increase year-over-year, amounting to €5.46 billion. In terms of currency-neutral revenue, which adjusts for currency fluctuations, there was an 8% increase compared to the same period last year. Adidas' CEO, Bjorn Gulden, commented on the results, highlighting that despite ongoing market instability and challenges, the company is seeing progress in all areas. Increased brand popularity and improved sales are helping Adidas enhance its relationships with retail partners and allocate more resources towards rejuvenating its brand and corporate presence.
Deutsche Lufthansa AG also shared its performance figures, revealing a 5% increase in group revenue for the first quarter of fiscal year 2024, totaling €7.4 billion. However, the airline faced a worsening financial situation with its net loss deepening to €734 million, up from €467 million in the same period in 2023. The loss per share also grew from €0.39 to €0.61. On a brighter note, summer bookings showed a robust increase of 16% year-over-year, and the company is optimistic about achieving a capacity level of approximately 92% of its pre-2019 crisis levels throughout 2024, albeit slightly lower than the 94% previously forecasted.
Finally, Volkswagen Group reported a slight decrease in its quarterly revenue for the first fiscal quarter of 2024, with figures reaching €75.5 billion, down 1% from the previous year. The automotive giant saw a 2% decline in vehicle sales, which dropped to 2.1 million units. However, customer deliveries showed a positive trend with a 3.1% increase year-over-year, totaling 2.1 million units. Meanwhile, vehicle production slightly decreased by 0.3% to 2.3 million units. The company's operating profit before special items saw a significant reduction of 20.2%, landing at €4.6 billion, reflecting the challenges faced in maintaining profitability amidst varying market conditions.
30.04.2024
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