12:10 pm, February 16, 2024
Renault Group is celebrating a record performance for 2023.
The French manufacturer has posted its annual results that show group revenue rose by 13.1% from the year before to €52.376bn (circa £44.814bn).
Automotive revenue stood at €48.15bn (£41.2bn) – up 11.7% compared with 2022.
Its operating income – post-expenses profit – increased by 13.4% to €2.485bn (£2.13bn), while its group operating margin as a percentage of revenue rose by 2.4 percentage points to 7.9%, coming in at €4.117bn (£3.525bn).
Meanwhile, its auto operating margin as a percentage of revenue went up by three percentage points to 6.3% at €3.051bn (£2.61bn).
Both operating margins were record figures for the group, it said.
Net income – also known as net earnings, or the ‘bottom line’ once all expenses, interest, and taxes have been deducted from revenues – saw a move from the red to the black, going up by €3.031bn (£2.593bn) versus 2022 to €2.315bn (£1.985bn).
The contribution of associated companies amounted to €880m (£753m) versus €423m (£362m) in 2022, including €797m (£682m) related to Nissan’s contribution.
Its automotive net financial position stood at €3.724bn (£3.183bn) on December 31, 2023 compared with €549m (£470m) on December 31, 2022, and included the sale of 211m Nissan shares held in a French trust, as per the new alliance agreement, which brought in €764m (£654m).
Total inventories of new vehicles including the independent dealer network stood at 484,000, which the group said was better than its objective, versus 569,000 at the end of June 2023 and 480,000 by the 2022 year end.
Renault Group also reported record free cash flow of €3.024bn (£2.584bn) last year as opposed to €2.1bn (£1.8bn) in 2022.
CEO Luca de Meo hailed the figures, saying: ‘Today, Renault Group is posting record results. These results are the outcome of a tremendous teamwork and reflects the success of our Renaulution strategy.
‘Our fundamentals have never been stronger, and we will not stop there.
‘In 2024, we will benefit from an unprecedented number of vehicles launches, showcasing Renault Group’s renewal while continuing to optimise our cost structure.
‘At the same time, we are leading at an incredible speed the in-depth transformation of the group with important steps achieved for our major projects and an acceleration of our EV and software strategy.’
He added: ‘Our organisation brings flexibility and boosts performance. This is a strength in a challenging environment!
‘I would like to thank the teams for these achievements. All together, we are giving birth to a new and much more efficient Renault Group, which is creating value for all stakeholders.’
Looking ahead, the manufacturer said it would be launching seven new Renault brand vehicles this year, including two all-electric vehicles and two hybrid vehicles.
Meanwhile, the European and Latin America automotive markets are expected to stay stable this year, but the Eurasia market is expected to decline by 11%.
As such, the group is aiming to achieve an operating margin of at least 7.5% and a free cash flow of not less than €2.5bn (£2.14bn).
The proposed dividend for the 2023 financial year is €1.85 £1.58) per share – up by €1.60 £1.37) per share versus 2022.
