Automation

Renault Group: 21% Income Progress year-to-date pushed by disciplined industrial coverage and product offensive in Europe

Spread the love


Group income at €37.4 billion, +21.1% vs 2022 9m1, +25.3% at fixed change charges

  • 2023 9-months:
    • Group income at €37.4 billion, +21.1% vs 2022 9m1, +25.3% at fixed change charges2
    • Auto income at €34.2 billion, +20.1% vs 2022 9m1, +24.2% at fixed change charges2
    • Group registrations up 10.9% globally and 21.3% in Europe
  • 2023 Q3:
    • Group income at €10.5 billion, +7.6% vs 2022 Q31, +13.8% at fixed change charges2
    • Auto income at €9.4 billion, +5.0% vs 2022 Q31, +11.3% at fixed change charges2
    • Group registrations up 6.1% globally and 15.3% in Europe
    • Continued sturdy value impact at 7.5 factors over the quarter
  • Europe orderbook stays very wholesome at 2.5 months of ahead gross sales on the finish of September
  • 2023 steerage confirmed:
    • a Group working margin between 7% and eight%
    • a free money move superior or equal to €2.5 billion

Renault Group expects a Group working margin in H2 above H1, which was at 7.6%.

“Renault Group achieved once more a powerful efficiency within the third quarter with whole income growing by 13.8% at fixed change charges. We’ve got entered the final quarter with confidence and ensure the development of our profitability within the second half of the yr and past, pushed by our product offensive, together with the advantages of our price discount program and our disciplined industrial coverage targeted on worth.

Within the meantime, we’re shifting quick ahead on all our Revolution initiatives and this quarter was very energetic. We formally launched Horse and signed the JV settlement with Geely. Ampere carve-out will happen in November and we are going to current intimately its technique throughout a Capital Markets Day on November 15th. We additionally introduced the Flexis Mission along with Volvo Group and CMA CGM, a real sport changer to deal with the challenges of electrifying LCVs within the city logistics sector. We’re progressively constructing our next-gen automotive firm.

Lastly, following the signature of the Alliance definitive agreements in July, we verify that the completion of the transaction is anticipated by the tip of the yr, as deliberate. This may create further worth by widespread operational initiatives and provides Renault Group the chance to optimally reallocate a part of its capital.”  mentioned Thierry Piéton, Chief Monetary Officer of Renault Group.

  • Revolution initiatives – newest developments:
    • Horse (devoted entity for superior low-emission ICE and hybrid powertrains):
      • Carve-out efficient on July 1st, 2023.
      • Signing of a JV binding settlement on July 11th, 2023 with Geely, enabling the deconsolidation of Horse and the beginning of the brand new JV upon closing.
      • Ongoing discussions with Aramco.
    • Ampere:
      • Carve-out efficient in November 2023.
      • Capital Markets Day on November 15th, 2023.
      • Concentrating on the very best window for an IPO, most likely in 2024 H1.
    • Flexis mission:
      • Binding agreements signed by Renault Group and Volvo Group to launch a brand new firm (preliminary 50-50 fairness stakes) to pioneer and lead the e-LCV European market with an all-new technology of totally electrical vans.
      • CMA CGM Group would be part of the brand new firm.
      • Anticipated closing of the brand new firm early 2024.
    • Alliance:
      • Definitive agreements signed in July 2023. Completion of the transaction anticipated in This fall, as deliberate. As soon as finalized, Renault Group will be capable to monetize the 28.4% of Nissan shares transferred to a belief.

1 The 2022 figures embrace restatements following the primary software of IFRS 17 “Insurance coverage contracts”.

In an effort to analyze the variation in consolidated income at fixed change charges, Renault Group recalculates the income for the present interval by making use of common change charges of the earlier interval.

Industrial outcomes: Third quarter highlights

Worldwide Group’s gross sales reached 511,000 automobiles in 2023 Q3, up 6.1% in comparison with 2022 Q3. In Europe, gross sales have been up 15.3%.

  • Renault model world gross sales reached practically 357,000 models, up 11.0% versus 2022 Q3. In Europe, Renault model elevated its gross sales by 24.8% to 223,000 models.
  • Within the first 9 months of 2023, Renault model solidifies its place because the second best-selling automotive model in Europe, up 22.2% vs. 2022 and reaffirms its management within the French market each on the PC market and on the LCV market.
  • Renault continues to outperform on the LCV market with 21.0% progress worldwide on the 9 months and particularly in Europe up 25.5%. Renault is the European chief on the industrial vans market.
  • Dacia recorded 494,000 models worldwide up 16.7% over the primary 9 months 2023. In 2023 Q3, Dacia offered 148,000 models globally, up 2.4% versus 2022 Q3.
  • The 4 flagships of the Dacia posted elevated gross sales over the primary 9 months 2023: Spring +40.6%, Sandero +18.3%, Duster +4.1% and Jogger +76.1%.
  • Within the retail channel, Dacia maintains its 2nd place on the European podiumyear-to-date.
  • Alpine recorded over 1,000 gross sales in 2023 Q3, up 31.0% versus 2022 Q3.

Continued excessive value impact at 7.5 factors over the quarter:

  • Give attention to retail with 64% of Group gross sales on retail channel within the Group’s 5 primary international locations in Europe4.
  • Renault model passenger automobiles gross sales in C & above segments in Europe elevated by 27% in 2023 Q3 versus 2022 Q3.
  • Renault Megane E-TECH Electrical recorded 11,500 gross sales in whole in 2023 Q3. Within the first 9 months, 70% of gross sales have been on excessive trim variations and 80% on probably the most highly effective engine. It represented 2.2% of the BEV market in Europe.
  • Renault Austral recorded near 21,000 gross sales in 2023 Q3. Within the first 9 months, 65% of gross sales have been hybrid and 60% of excessive trim variations.
  • Renault Espace, launched in June 2023, has broadened the supply and recorded practically 2,400 gross sales. It’ll progressively hit new markets.

Renault Group pursues its electrification offensive:

  • Renault model recorded a 22% quantity enhance in electrified passenger5 automotive gross sales in 2023 Q3 versus 2022 Q3, accounting for 43% of the model’s passenger automotive gross sales in Europe. Full electrical automobiles represented 11% of the model’s passenger automotive gross sales in Europe in 2023 Q3.
  • This momentum will proceed to be supported by Espace E‑Tech Hybrid and the arrival of New Clio with a hybrid engine on the core of its vary. From 2024 onwards, Renault’s electrical line‑up will additional speed up the dynamic, with Scenic E-Tech and Renault 5 particularly.
  • Dacia Jogger Hybrid 140 represents 1 out of 4 of Jogger orders. Jogger is a key product to draw new buyer profiles and its hybrid model helps Dacia clean electrification technique.
  • Dacia Spring (100% electrical) recorded near 16,000 gross sales in Europe in 2023 Q3. It was once more on the rostrum of retail electrical automobiles in Europe being probably the most inexpensive BEV in the marketplace.

Third quarter income

Group income for 2023 Q3 amounted to €10.5 billion, up 7.6% in comparison with 2022 Q3.
At fixed change charges6, Group income was up 13.8%.

Automotive income reached €9.4 billion, up 5.0% in comparison with 2022 Q3, or +11.3% at fixed change charges. The detrimental change charges impact of -6.3 factors is generally linked to the Argentinean peso devaluation and to a lesser extent to the Turkish lira.

The remainder of the variation is defined by the next:

  • A quantity impact of -1.6 factors. The 6% progress in registrations was offset by larger destocking within the unbiased sellers’ community in 2023 Q3 in comparison with 2022 Q3 and coming again to regular seasonal evolutions.
  • A geographic mixture of +3.1 factors benefiting from a better mixture of European gross sales.
  • A nonetheless sturdy value impact of +7.5 factors, reflecting the continuation of the industrial coverage targeted on worth, value will increase to offset forex impact together with an optimization of economic reductions.
  • A muted product combine impact (-0,4 factors), primarily ensuing from a really sturdy finish of lifetime of Clio section 1 with a decrease income per unit than Renault Group’s common and a decrease degree of Megane E-tech invoices this quarter in step with destocking, which offset the constructive impression of Austral and Espace.
  • A constructive impression of gross sales to companions of +2.9 factors, primarily supported by a dynamic LCV market driving gross sales to Nissan, Renault Vehicles and Mercedes-Benz in addition to from the manufacturing of the ASX for Mitsubishi Motors.
  • An “Different” impact of -0.2 factors. The lower within the contribution of gross sales from the Renault Retail Group community following the disposals of branches was partially offset by the efficiency of elements and providers.

Mobility Companies contributed €11 million to 2023 Q3 income in comparison with €9 million in 2022 Q3.

Mobilize Monetary Companies posted income of €1,102 million in 2023 Q3, up 36.4% in comparison with 2022 Q3 because of larger rates of interest and to the rise of recent contracts coupled with larger common quantity financed per unit.

Common performing belongings (€52.1 billion) elevated by 15.6% in comparison with 2022 Q3. That is supported by automobile restocking within the dealerships and by a 15.9% enhance in new financing for the retail enterprise.

As at September 30, 2023, whole inventories (together with the unbiased community) decreased to 542,000 automobiles with:

  • Group inventories at 226,000 automobiles
  • Unbiased sellers’ inventories at 316,000 automobiles

The lower in comparison with 569,000 models on the finish of June 2023 is in step with the target of being beneath 500,000 automobiles on the finish of the yr.

The extent of inventories is in step with the orderbook which stays at 2.5 months of ahead gross sales on the finish of September.

2023 FY monetary outlook

Renault Group confirms its 2023 FY monetary outlook with:

  • a Group working margin between 7% and eight%
  • a free money move superior or equal to €2.5 billion

Renault Group expects a Group working margin in H2 above H1, which was at 7.6%.

Renault Group’s consolidated income

Renault Group’s high 15 markets on the finish of September 2023

Complete Renault Group PC + LCV gross sales by model

The 2022 figures embrace restatements following the primary software of IFRS 17 “Insurance coverage contracts”.
In an effort to analyze the variation in consolidated income at fixed change charges, Renault Group recalculates the income for the present interval by making use of common change charges of the earlier interval.
Retail personal automobiles in Europe = Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
Passenger automobiles in France, Germany, Spain, Italy, United Kingdom.
Consists of EV, Hybrid (HEV) and Plug-In Hybrid (PHEV), excludes Mid-Hybrid (MHEV).
In an effort to analyze the change in consolidated income at fixed change charges, Renault Group recalculates income for the present monetary yr by making use of the typical change charges of the earlier interval.

SOURCE: Renault Group

Leave a Reply

Your email address will not be published. Required fields are marked *