Renault Group announce strong improvement of all financials
Exceeding 2023 FY financial guidance (already upgraded in June 2023):
Strong improvement of all financials with record levels: Group revenue: €52.4bn, +13.1% and +17.9% at constant exchange rates vs 2022Record Group operating margin: €4.1bn or 7.9% of revenue (+2.4 pts vs 2022), up €1.5bn vs 2022Record Auto operating margin: €3.1bn or 6.3% of revenue (+3.0 pts vs 2022), up €1.6bn vs 2022Net income: €2.3bn, up €3.0bn vs 2022Record free cash flow: €3.0bn, up €0.9bn vs 2022Automotive net cash financial position at highest levels: €3.7bn at December 31, 2023 (up €3.2bn vs December 31, 2022)More than doubled ROCE: 28.5% in 2023 vs 12.6% in 2022
Strong order book in Europe at 2.5 months of forward sales
Renault Group back in the spotlight for its customers thanks to the successful renewal of the line-up. In 2023 and in Europe, Renault Group has 2 vehicles in the Top 3 of the best-selling cars and Renault brand has risen from 5th place to 2nd In 2024, the product offensive with 10 launches[2] and the acceleration of cost reductions will be the drivers for operational performance and strong cash generation. Renault Group is aiming to achieve in 2024:A Group operating margin ≥7.5%A free cash flow ≥€2.5bnA significantly higher dividend of €1.85 will be proposed to the vote of the Annual General Meeting on May 16, 2024 versus €0.25 per share in respect of 2022 financial year (+€1.60 per share)“
Today, Renault Group is posting record results. These results are the outcome of a tremendous teamwork and reflect 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 optimize 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. Our organization 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 Renault Group much more efficient and performant which is creating value for all stakeholders.” said Luca de Meo, CEO of Renault Group
