"Daimler concluded the year 2013 with record levels of unit sales, revenue, EBIT [earnings before interest and tax] and net profit," the car maker said in a statement.
"The company anticipates renewed growth in 2014," it added.
Net profit climbed by 28 percent to €8.72 billion and underlying profit, as measured by earnings before interest and tax, was up 23 percent at €10.82 billion.
Unit sales grew by seven percent to 2.354 million vehicles and revenues rose by three percent to €117.98 billion.
The Stuttgart-based firm said it would propose increasing the dividend payout to shareholders to €2.25 per share from €2.20 a year earlier.
"2013 was a year that we didn't begin particularly well, but which we ended very successfully. Our efforts paid off," said chief executive Dieter Zetsche.
"Daimler is in very good condition. Our prospects for the future also make us confident that we will achieve our ambitious goals in all our divisions," Zetsche added.
Based on the anticipated development of automotive markets and the divisions' planning, Daimler said it would be able to achieve "further significant growth" in sales in 2014.
"Daimler therefore also assumes that group revenue will grow significantly in 2014," the statement added.
Investors appeared to be pleased by the group's positive outlook and Daimler shares were the second-biggest gainers on the Frankfurt stock exchange on Thursday, adding 3.02 percent in a slightly firmer market.