Industria
2024 first half results: Renault Group breaks new records and continues to improve its performance
20240724_Press release_Renault Group_2024 H1 Results
2024 first half results
Renault Group breaks new records and continues to improve its performance
“ These record results are the fruit of a considerable work made by the Renault Group teams over the last years. Our efforts to reduce costs and focus our commercial policy on value are reflected in a new line-up, the best one that this company has had in 3 decades. We have implemented the traditional levers of performance improvement, but we have also reconnected the company with the innovative mindset that once made its golden years.
For some months now, we have been accelerating our transformation to become the most progressive European automotive company. 5 focused businesses, a horizontal and ecosystemic approach, the strengthening of our supply chain, key processes optimization (“speed of lightness” program), AI deployment at all levels and across all value chains: these are the key ingredients of this Renault's new secret sauce. Flexibility, agility and innovation continue to drive performance improvement and efficient capital allocation. And the most important: Renault Group's people are fully committed to achieve this transformation. This is passion, fueling sustainable value creation for all our stakeholders“ said Luca de Meo, CEO of Renault Group
Boulogne-Billancourt, July 24, 2024
Financial results
Group revenue reached €26,958 million, up 0.4% compared to 2023 H1. At constant exchange rates , it increased by 3.7%.
Automotive revenue stood at €24,372 million, down 1.9% compared to 2023 H1. It included 3.1 points of negative exchange rates effect (-€779 million) mainly related to the devaluation of the Argentinean peso and to a lesser extent of the Turkish lira. At constant exchange rates , it increased by +1.2%. This evolution was mainly explained by the following:
The Group posted a record operating margin at 8.1% of revenue versus 7.6% in 2023 H1, up 0.5 points.
Automotive operating margin stood at €1,600 million versus €1,541 million in 2023 H1. It represented 6.6% of Automotive revenue, an improvement of +0.4 points versus 2023 H1. This evolution was mainly explained by the following:
The contribution of Mobilize Financial Services (Sales Financing) to the Group's operating margin reached €593 million, up €75 million vs. 2023 H1, mainly thanks to the continuous strong growth of the customer financing activity as well as -€37 million of non-recurring negative impact of swaps valuation in 2023 H1.
Other operating income and expenses were negative at -€277 million (vs. +€56 million in 2023 H1) and included notably +€286 million of capital gain on Horse deconsolidation, -€440 million of capital loss on Nissan shares disposal made in March 2024 and restructuring expenses for -€123 million.
After considering other operating income and expenses, the Group's operating income stood at €1,898 million compared to €2,096 million in 2023 H1.
Net financial income and expenses amounted to -€385 million compared to -€260 million in 2023 H1. This variation is mostly explained by the impact of hyperinflation in Argentina.
The contribution of associated companies amounted to €195 million compared to €566 million in 2023 H1.
Current and deferred taxes represented a charge of -€328 million compared to a charge of -€278 million in 2023 H1. The effective tax rate amounted to 17% at the end of June 2024, up +2 pts versus 2023 H1, due to the first year of implementation of Pillar 2 directive and other deferred tax impacts.
Thus, net income stood at €1,380 million, including the capital loss on Nissan shares disposal. Net income, Group share, was €1,293 million (or €4.74 per share).
The cash flow of the Automotive business reached €2,972 million in 2024 H1 and included €600 million of Mobilize Financial Services dividend.
Excluding the impact of asset disposals, the Group's net CAPEX and R&D stood at €2,143 million i.e. 7.9% of revenue compared to 6.9% of revenue in 2023 H1. Assets disposals amounted to €28 million, compared to €197 million in 2023 H1. Group's net CAPEX and R&D amounted to 7.8% of revenue including asset disposals.
Free cash flow stood at €1,257 million and included a negative change in working capital requirement of -€209 million.
The Automotive net cash financial position stood at the record level of €4,860 million on June 30, 2024, compared to €3,724 million on December 31, 2023, an improvement of €1,136 million. This increase was driven by the strong free cash flow, a positive impact of Horse deconsolidation (+€420 million), cash received from the disposal of Nissan shares (+€358 million), dividends received from Nissan (+€142 million). It was partly offset by dividends paid to shareholders for -€628 million and financial investments for -€355 million, of which -€215 million in Flexis SAS.
Liquidity reserve at the end of June 2024 stood at a high level at €17.6 billion.
2024 FY financial outlook
Renault Group confirms its 2024 FY financial outlook:
Renault Group's consolidated results
Additional information
The condensed half-year consolidated financial statements of Renault Group at June 30, 2024 were reviewed by the Board of Directors on July 24, 2024.
The Group's statutory auditors have conducted a limited review of these financial statements and their half-year report will be issued shortly.
The financial report, with a complete analysis of the financial results in the first half of 2024, is available at www.renaultgroup.com in the "Finance" section.
2024 H1 Financial Results Conference
Link to follow the conference on July 25, 2024, from 8am CEST and available in replay:
2024 H1 conference streaming
About Renault Group
Renault Group is at the forefront of a mobility that is reinventing itself. Strengthened by its alliance with Nissan and Mitsubishi Motors, and its unique expertise in electrification, Renault Group comprises 4 complementary brands - Renault, Dacia, Alpine and Mobilize - offering sustainable and innovative mobility solutions to its customers. Established in more than 130 countries, the Group has sold 2.235 million vehicles in 2023. It employs more than 105,000 people who embody its Purpose every day, so that mobility brings people closer.
Ready to pursue challenges both on the road and in competition, Renault Group is committed to an ambitious transformation that will generate value. This is centred on the development of new technologies and services, and a new range of even more competitive, balanced, and electrified vehicles. In line with environmental challenges, the Group's ambition is to achieve carbon neutrality in Europe by 2040.
www.renaultgroup.com
In order to analyze the variation in consolidated revenue at constant exchange rates, Renault Group recalculates the revenue for the current period by applying average exchange rates of the previous period.
Excluding pick-up trucks.
In order to analyze the variation in consolidated revenue at constant exchange rates, Renault Group recalculates the revenue for the current period by applying average exchange rates of the previous period.
Free cash flow: cash flow after interest and taxes (excluding dividends received from listed companies) less tangible and intangible investments net of disposals +/- change in working capital requirement.
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