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Renault grows revenue despite fewer vehicle sales

Renault’s third-quarter revenue rose 1.5 per cent to 11.596 billion euros as vehicle sales fell 6 per cent. Financing revenue increased while automotive revenue stayed broadly flat. The group retained its annual operating margin and cash-flow targets as electric cars gained a larger share of its European passenger-car sales.

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Close-up of a connector plugged into an electric passenger car’s charging port in a dealership delivery bay in France.

Financing revenue grows as vehicle sales fall

Renault increased quarterly revenue and retained its annual financial targets.[1], [2]

French automaker Renault Group increased third-quarter revenue 1.5 per cent to 11.596 billion euros and kept its annual financial targets. Revenue grew 1.4 per cent at constant exchange rates. The group sold 497,799 vehicles in the quarter, a decline of 6 per cent from a year earlier.[1]

Automotive revenue was broadly unchanged at 9.835 billion euros. Mobilize Financial Services, the group’s vehicle-financing business, increased revenue 11 per cent to 1.761 billion euros. Higher interest rates and growth in earning assets supported that business. Average earning assets rose 5 per cent to 62.5 billion euros.[1]

Electric cars take a larger European share

European electric passenger-car sales increased 84.7 per cent, taking their share of the group’s passenger-car sales there to 25.8 per cent. Including hybrids and plug-in hybrids, electrified models accounted for 54.9 per cent. Renault-brand global sales fell 2.9 per cent in the quarter and Dacia sales dropped 12.8 per cent, while Alpine sales increased 58.4 per cent.[1]

Annual margin target stays at about 5.5 per cent

Management retained an annual operating margin target of about 5.5 per cent and automotive free cash flow of approximately 1.0 billion euros. It anticipates a smaller seasonal improvement in second-half margins than in previous years as raw-material expenses and inflation rise. Inventories totalled 532,000 vehicles at the end of September, and the European order book represented around two months of projected sales.[1]

References

  1. News sourceRenault GroupRenault keeps annual targets as quarterly revenue grows↩1↩2↩3↩4↩5
  2. News sourceAgefi-Dow JonesRenault retains targets after higher quarterly revenue↩
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