31/07/2024

2024 first half results: Renault Group breaks new records and continues to improve its performance

Renault Group (Euronext CAC40: RNO) breaks new records profitability in 2024 H1 and continues to improve its performance. Renault posted a better-than-expected operating profit for the first half of the year as reported, due to strong pricing and new vehicle launches, and stuck to its full-year profit-margin forecast. The French automaker reported that its first-half sales volume rose +1.9% versus the same period in 2023 due to the strong performance of hybrid models in Europe, its key region.

Video: Renault Group.

Renault posted a higher operating margin of 8.1% for the first half of the year, up from 7.6% a year earlier and higher than the 7.9% expected by analysts. This is a key metric for Renault, which has targeted a double-digit operating margin by 2030. The automaker stuck to its full-year operating margin forecast of 7.4% or above.

Renault returned to growth last year after four consecutive years of declining unit sales, and is hoping that 10 new launches this year will keep the momentum. The company had hoped to be at the forefront of legacy automakers’ efforts to go electric, with a plan for the Renault brand to go fully electric by the end of the decade. Demand for EVs has slowed sharply in Europe, with data from the region’s trade body showing that sales only rose 1.3% in the first half. Automakers are instead seeing strong demand for more affordable and more convenient hybrids and are rolling out additional models to meet demand. 

Renault Group breaks new records and continues to improve its performance

Photo: Renault Group.

Renault has launched new hybrid models and executives said it will continue to do so. Renault reported first-half revenue of 26.96 billion €, up 0.4%1 over the previous year and above market forecasts of 26.9 billion €. The company said it currently has a strong order book equivalent to 2.6 months of forward-looking sales.Renault brand is #3 in Europe, #1 in France and leader in LCV².

Reconnecing the company with the innovative mindset that once made its golden years

“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”, said Luca de Meo, CEO of Renault Group.

About Renault Group

Photo: Renault Group.

“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“ points out Luca de Meo.

Renault Group

Proud of its international recognition, Renault is the best-selling French brand in the world. 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 more than 2.235 million vehicles in 2023. It employs nearly 106.000 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.

¹In 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.
²Excluding pick-up trucks.

 

Published by Renault Group and Reuters.

Article written and photos copyright © Renault Group, Reuters.

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