Mercedes-Benz South Africa (MBSA) group of companies has announced that its revenue for the year ended 2016 increased by 10,8%, to R73,4 billion. Earnings before Interest and Tax (EBIT) of R5,6 billion were achieved for the same period, an increase of 27,3%.
The figures released are unaudited and preliminary – for the 2016 financial year. EBIT for the previous financial year, ended 31 December 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.
Various Daimler Trucks & Buses (DT&B) brands (Mercedes-Benz Trucks, Western Star, Mercedes-Benz Buses and FUSO Trucks) achieved the company’s goal of being the benchmark commercial vehicle solutions provider by providing customised mobility solutions.
FUSO Trucks launched the medium to heavy-duty FJ 16-230, which is said to have proved to be the truck of choice in the southern African region. With the addition of the vehicle, the manufacturer offered a wide choice for various applications such as distribution, rentals, courier and small-, micro- and medium-enterprises.
Mercedes-Benz Bus & Coach continued with its pioneering ways, as the division delivered 150 dual fuel city buses – a world-first for Mercedes-Benz – to Johannesburg's MetroBus, as well as handing over 40 Compressed Natural Gas buses to the City of Tshwane.
Mercedes-Benz Trucks increased its market share by almost two percentage points last year, as a result of the continued focus on adding value to its customers.
“A depreciating rand and harsh operating conditions did not dampen our collective spirits as DT&B in 2016. In fact, these factors pushed us to innovate through campaigns such as Total Cost of Ownership, allowing us to further prove that we always put our customers’ mobility requirements first. This approach resulted in DT&B selling 4 631 trucks and buses, a figure we are proud of in such a tough economy,” says Jasper Hafkamp, Executive Director, Daimler Trucks & Buses Southern Africa.
Mercedes-Benz Trucks, FUSO Trucks, Western Star and Mercedes-Benz Bus & Coach all contributed in making 2016 yet another milestone year for DT&B. One of the major reasons why the manufacturer continued to yield positive results is that it offers benchmark value chain offerings.
DT&B saw penetration of these value chain products increase across the board. CharterWay enjoyed a 39 percentage point increase on penetration for all its service contracts, due to the Integrated Service Plan. The manufacturer's driver and vehicle management system, FleetBoard, increased penetration by six percentage points, while Mercedes-Benz Financial Services increased penetration across the DT&B offering by 10 percentage points.
Forming part of the value chain is the manufacturer’s pre-owned vehicles and trailers arm, TruckStore South Africa, which remains a success story with total sales growing by 8% in 2016 compared to the previous year. The outlet is the biggest and most successful single TruckStore centre outside Germany, and continues to develop the pre-owned commercial vehicle and trailer business by exploring a number of opportunities.
One of these was supplying Daimler’s Regional Centre Southern Africa market with products and services that cannot be matched by any of its competitors in the region. This led to TruckStore increasing export sales into the southern African markets.