Mercedes profits hit by inflation, supply chain snags in 2023

German luxury carmaker Mercedes-Benz felt the effects of higher costs in 2023 as a result of inflation and supply chain disruptions, reported dpa.

Revenue increased by 2% over the previous year to €153.2 billion ($166.4 billion), the Stuttgart-based company reported on Thursday.

However, earnings before interest and taxes adjusted for special effects fell by 3% to €20 billion.

Consolidated net profit fell by just under 2% to €14.5 billion.

Nevertheless, shareholders are to receive a dividend per share increased by 10 cents to €5.30 euros.

Mercedes had announced on Wednesday a share buyback totalling €3 billion.

The strong growth in Mercedes-Benz's van unit could not make up for the losses in the passenger car division last year.

The average sales price per car was up an average of 2% to €74,200, and Mercedes had to pay less for raw materials. But inflation and higher costs in the supply chain more than cancelled this out.

Looking ahead for fiscal 2024, the carmaker expects group revenue to remain at the prior-year level.