Mercedes-Benz South Africa announces 2016 business results

Mercedes-Benz South Africa announces 2016 business results
The Mercedes-Banz C350e plug-in hybrid is now manufactured in East London

The Mercedes-Banz C350e plug-in hybrid is now manufactured in East London

 

MERCEDES-Benz South Africa (MBSA) Ltd group of companies today announced that its revenue for the year ended 2016 increased by 10,8 percent, to R73,4 billion. Earnings before Interest and Tax (EBIT) of R5,6 billlion was achieved for the same period, an increase of 27,3 percent.

The figures released are unaudited and preliminary – for the 2016 financial year. 

EBIT for the previous financial year, ended December 31 2015, excludes the impact of a once-off reporting item from the sale of Atlantis Foundries, while the 2016 figure excludes the once-off impact from the sale of some of MBSA’s own retail dealerships.

The revenue gains were, as in the preceding year, in large part due to higher production volume out of its East London Plant, as well as the concurrent increase in export revenue generated from that facility. 

 “The group of companies showed resilience in a continuously changing landscape by remaining true to the vision we have set out for ourselves. This landscape included fluctuating exchange rates; a subdued local market for both passenger and commercial vehicles; as well as increasing global uncertainty. We remain steadfast in our goal of sustainable growth through our product offensive, steadily increasing production and by collaborating with all stakeholders to actively build not only our company, but also the South African economy. And in all of this, our customers remain our top priority,” says Arno van der Merwe, CEO and Executive Director Manufacturing, MBSA. 

The company also continued its investment into the East London Plant with a total of R461m invested for the period. Included in this amount, was the preparation for the introduction of the C 350 e plug-in hybrid into the production line-up as well as other projects to ensure consistent quality and boost productivity. 

Van der Merwe once again reiterated the group of companies’ commitment as a socially responsible corporate citizen to South Africa. He announced that the East London Plant will start production of three Mercedes-AMG models in 2017 – the Mercedes-AMG C 43 4MATIC, Mercedes-AMG C 63 and the Mercedes-AMG C 63 S. Along with these AMG models, the Mercedes-Benz C 400 4MATIC will also be added for production from the plant.  The total investment for these new models will be above R200 million.

Group Revenue in 2015 :       Rbn 66,2 / 2016  Rbn 73,4

Group EBIT (from on-going business):  2015 Rbn 4,4 / 2016  Rbn 5,6

 

DIVISIONAL SUMMARY

Revenue boosted by good performance from Manufacturing and Component Exports – up by 10,8 percent

Solid performance from business units translates into healthy EBIT growth of 27,3 percent

Mercedes-Benz Cars outsells competition locally in the premium luxury segment

Daimler Trucks & Buses Southern Africa remains a market leader and focuses on innovative mobility solutions

Mercedes-Benz Vans achieves positive results in South Africa in a tough environment, V-Class contributing significantly in the mid-size van market

Mercedes-Benz Financial Services (MBFS) acquisition achievements result in an all-time high portfolio of R28,6 billion

East London Plant produces record volumes in 2016, majority of units for export

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