8:26 am, June 29, 2023
Renault Group has upgraded its financial outlook for this year, citing ‘record levels of performance’.
The manufacturer now expects its group operating margin to be between seven and eight per cent, versus the six per cent that was previously forecast.
In addition, it reckons its automotive operational free cash flow will be at least equal to €2.5bn (£2.2bn) and could even exceed it. That’s compared with an earlier prediction of €2bn (£1.7bn).
Free cash flow is defined as profitability that doesn’t include the non-cash expenses of a company’s income statement but does include spending on equipment and assets plus changes in working capital from the balance sheet.
Renault said the improvement had been mainly driven by the quality of its sales mix, which it attributed to the success of new launches and its commercial policy, which it said was focused on value.
Renault is due to release its first-half results for the year on July 27, but ahead of that, it said Renault Group expects its group operating margin for the initial six months of 2023 to be more than seven per cent.
Its six-month automotive operational free cash flow is also predicted to be around €1.5bn (£1.3bn) which includes €600m (£518m) of Mobilize Financial Services dividends.
Group CEO Luca de Meo, pictured, said: ‘Renault Group reaches record levels of performance.
‘These results are the outcome of our strategy focused on value and of the unwavering commitment of the teams over the last three years to [the] “Renaulution” [transformation plan] which is transforming the group in depth.
‘Thus, Renault Group upgrades its financial outlook for the year, thanks to the continuous efforts to reduce costs and to the unprecedented product offensive in the group’s history.
‘This product offensive across all our brands has only just begun and will further improve the group’s performance, while leading a unique transformation to become the Next Gen automotive company.’
