The profitability of Daimler AG in the 2020 financial year was affected by significantly higher financial income and improved operating profit. (See table B.34)
|In millions of euros|
|Cost of sales||-1,641||-1,959|
|General administrative expenses||-928||-964|
|Other operating income/expense||280||-272|
|Transfer to/from retained earnings||-689||2,641|
Daimler AG generated revenue of €1.7 billion primarily from the provision of services to companies of the Group (2019: €2.0 billion). The decrease in revenue was the result of providing a lower volume of services to the companies of the Group, due to short-time working and efficiency measures.
Cost of sales comprises the services provided to Group companies to generate sales revenue and decreased to €1.6 billion (2019: €2.0 billion).
General administrative expenses amounted to €0.9 billion (2019: €1.0 billion), including expenses of €0.1 billion from ongoing programs for the optimization of personnel costs. The prior-year figure takes into consideration costs in connection with “Project Future” of €0.2 billion.
Other operating income amounted to €0.3 billion (2019: expense of €0.3 billion) and primarily comprises income from the sale of patents in connection with combining the Group-wide fuel-cell activities and relating to Group-internal derivatives of the vehicle business.
Financial income increased by €3.4 billion to €2.9 billion, primarily due to higher income from investments in subsidiaries and associated companies. This was the result of a positive development with profit transfers from subsidiaries.
The income tax expense amounted to €0.1 billion (2019: €0.0 billion).
Net profit amounts to €2.1 billion (2019: net loss of €1.7 billion) and is thus in line with the expectation stated in the Outlook chapter of Annual Report 2019.
The economic situation of Daimler AG in its function as a management holding company mainly depends on the development of its subsidiaries. Daimler AG participates in the operating results of its subsidiaries through dividend distributions and profit-and-loss transfers. Its economic situation therefore corresponds with that of the Daimler Group, which is described in the chapter »Overall Assessment of the Economic Situation«.