Industria
2024 results: Solid growth, record operating profit and net cash; Financial guidance exceeded
20250220_Renault Group_Press Release_2024 FY results
2024 results: Solid growth, record operating profit and net cash
Financial guidance exceeded
“Renault Group continues to improve its operational performance, execute its strategy and deliver on its targets. 2024 was an important year with the first benefits of our unprecedented product offensive. This performance is the result of an in-depth transformation of the company driven by a remarkable collective work. We have turned Renault Group into a much more flexible, efficient and performant company.
And we will not stop there! Thanks to the strong fundamentals built over the last 4 years and driven by an agile and innovative mindset, we are now preparing the next chapter, aiming for profitable growth while investing for the future. I want to thank our colleagues for these achievements: their passion, commitment, and team spirit are key drivers to our success.”
said Luca de Meo, CEO of Renault Group
Boulogne-Billancourt, February 20, 2025
Commercial performance
Financial results
The consolidated financial statements of Renault Group and the company accounts of Renault SA at December 31, 2024 were approved by the Board of Directors on February 19, 2025 under the chairmanship of Jean-Dominique Senard.
Group revenue reached €56,232 million, up 7.4% compared to 2023. At constant exchange rates , it increased by 9.0%.
Automotive revenue stood at €50,519 million, up 4.9% compared to 2023. It included 1.4 points of negative exchange rates effect mainly related to the Argentinean peso, to the Turkish lira devaluation and to a lesser extent to the Brazilian Real. At constant exchange rates , it increased by 6.3%, mainly due to the following:
The Group posted a record operating profit in absolute value at €4,263m, up €146m vs. 2023. It represented 7.6% of revenue.
Adjusted from the impacts of Horse operations , the Group operating margin increased by 15% in absolute value and by 0.5 points from 6.9% in 2023 to 7.4% in 2024.
Automotive operating margin stood at 5.9% of Automotive revenue or €2,996m compared to €3,051 million in 2023. This evolution was mainly explained by the following:
The contribution of Mobilize Financial Services (Sales Financing) to the Group's operating margin reached €1,295 million versus €1,101 million in 2023 mainly thanks to the continuous strong growth of the customer financing activity as well as the non-repetition of a -€84 million negative impact of swaps valuation observed in 2023.
Mobility Services contribution to the Group's operating profit increased by €7 million versus 2023 at -€28 million in 2024.
Other operating income and expenses were negative at -€1,687 million (versus -€1,632 million in 2023). This amount included -€1.5 billion of capital loss on the disposals of Nissan's shares made in March and September 2024, +€0.5 billion of capital gain on Horse deconsolidation, -€0.3 billion of impairment on vehicles developments and specific production assets and -€0.3 billion of restructuring costs.
After taking into account other operating income and expenses, the Group's operating income stood at €2,576 million versus €2,485 million in 2023 (+€91 million versus 2023).
Net financial income and expenses amounted to -€517 million compared to -€527 million in 2023. This evolution is explained by a lower cost of net debt partially offset by the negative impact of hyperinflation in Argentina.
The contribution of associated companies amounted to -€521 million compared to €880 million in 2023. This included +€211 million related to Nissan's contribution and -€694 million of adjustment of the investment in Nissan following the impairment test carried out on December 31, 2024 subsequent to Nissan's most recent assumptions.
The contribution of associated companies also included +€64 million of Horse contribution since its deconsolidation.
Current and deferred taxes represented a charge of -€647 million, compared to -€523 million in 2023. This increase is due to the performance improvement. The effective tax rate stood at 18%, stable compared to 2023.
Thus, net income stood at €891 million, and net income, Group share, was €752 million (or €2.76 per share). Excluding the capital loss on Nissan's shares disposal (-€1.5 billion), Nissan's contribution (+€0.2 billion) and the partial impairment of investment in Nissan (-€0.7 billion), net income stood at €2.8 billion versus €2.3 billion in 2023.
The cash flow of the Automotive business reached €5,239 million in 2024. It included €600 million of Mobilize Financial Services dividend. Tangible and intangible investments before asset disposals stood at €2,915 million (€2,821 million net of disposals) and restructuring expenses amounted to €379 million.
The change in working capital requirement was positive at €844 million due to the strong activity in Q4 2024.
Excluding the impact of asset disposals, the Group's net CAPEX and R&D stood at €4,066 million in 2024, representing 7.2% of revenue compared to 7.3% of revenue in 2023. It amounted to
7.1% including asset disposals.
Free cash flow stood at €2,883 million including €600 million of Mobilize Financial Services dividend.
The Automotive net financial position stood at a record level of €7,096 million on December 31, 2024, compared to €3,724 million on December 31, 2023, an improvement of €3,372 million. This increase was driven by the strong free cash flow, a positive impact of Horse operations (€1,058 million of which €324 million from the 10% stake sale to Aramco), cash received from the disposal of Nissan's shares (€852 million) and dividends received from Nissan (€142 million). It was partly offset by dividends paid to shareholders for €631 million (of which €540 million of dividend paid by Renault SA to its shareholders), financial investments for €478 million, of which €260 million in Flexis SAS, and -€454 million of other effects mainly related to treasury stock and IFRS16 impact.
Automotive liquidity reserve at the end of December 2024 stood at a high level at €18.5 billion versus €17.8 billion on December 31, 2023.
Dividend
The proposed dividend for the financial year 2024 is €2.20 per share , up 19% versus last year (+€0.35 per share). The payout ratio is 21.5% of Group consolidated net income – parent share . It would be paid fully in cash and will be submitted for approval at the Annual General Meeting on April 30, 2025. The ex-dividend date is scheduled on May 8, 2025 and the payment date on May 12, 2025.
2025 financial outlook
In a market still marked by uncertainty on demand and regulatory constraints, Renault Group will benefit in 2025 from full year impact of 2024 launches and 2025 product offensive, combined with the acceleration of cost reduction. They will be the drivers of operational performance and sound cash generation.
In 2025, considering market uncertainties especially due to CO emissions regulation impact in Europe (CAFE), Renault Group is aiming to achieve:
MFS dividend policy is based on a minimum level of equity to keep complying with both the European Central Bank and the credit rating agencies solvency ratios. Therefore, MFS pay-out ratio depends on the level of financing outstandings and equity. Financing outstandings have strongly increased in 2024 due to the increase of business and to the sharp rise in average vehicle prices, leading MFS to consider a dividend of €150m. From next year, MFS dividends will rise again to return to a level in line with historical average (subject to regulatory and MFS board approvals).
Renault Group's consolidated results
FY 2023: +€797m of contribution from Nissan's results and -€880 million of capital losses on Nissan's shares disposal.
FY 2024: +€211m of contribution from Nissan's results and -€1,527 million of capital losses on Nissan's shares disposals and -€694 million of impairment of investment in Nissan.
Horse accounting impacts on operating margin
The 2022 figures include restatements following the first application of IFRS 17 "Insurance contracts" in 2023.
Dividend payout calculation
FY 2024 dividend pending Shareholders' General Meeting approval.
Paid in 2024 for FY 2023.
Estimate based on number of shares as of Dec. 31, 2024, to be paid in 2025 pending Shareholders' General Meeting approval.
Additional information
The consolidated financial statements of Renault Group and the company accounts of Renault SA at December 31, 2024 were approved by the Board of Directors on February 19, 2025.
The Group's statutory auditors have conducted an audit of these financial statements, and their report will be issued shortly.
The earnings report, with a complete analysis of 2024 financial results including condensed financial accounts, is available at www.renaultgroup.com in the "Finance" section.
2024 Financial Results Conference
Link to follow the conference at 8am CET on February 20 , and available in replay: events.renaultgroup.com/en/
About Renault Group
Renault Group is at the forefront of a mobility that is reinventing itself. The Group relies on the complementarity of its 4 brands - Renault - Dacia - Alpine and Mobilize - and offers sustainable and innovative mobility solutions to its customers. Established in 114 countries, Renault Group sold 2.265 million vehicles in 2024. It employs more than 98,000 people who embody its Purpose every day, so that mobility brings people closer.
Ready to pursue challenges both on the road and in competition, the Group is committed to an ambitious and value-generating transformation focused 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.
https://www.renaultgroup.com/en/
In 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.
The adjustment from the impacts of Horse operations includes the cessation of assets amortization in 2023 (12 months) and 2024 (5 months) prior to the deconsolidation on May 31, 2024 and a mark-up invoiced by Horse since the deconsolidation (7 months in 2024).
Excluding -€1,527 million of capital losses on Nissan's shares disposals, +€211m of contribution from Nissan's results and -€694 million of impairment of investment in Nissan.
Automotive free cash flow: cash flow after interest and taxes (excluding dividends received from listed companies) less tangible and intangible investments net of disposals +/- change in working capital requirement.
PC + LCV: Passenger Cars + Light Commercial Vehicles.
Excluding pick-up trucks.
Includes EV, hybrid (HEV) and Plug-In hybrid (PHEV) passenger cars, excludes Mild-hybrid (MHEV).
France, Germany, Spain, Italy and United Kingdom.
Sandero, Duster, Clio and Captur.
For Renault brand and Dacia brand PC in France, Germany, Spain, Italy and United Kingdom.
In 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.
The adjustment from the impacts of Horse operations includes the cessation of assets amortization in 2023 (12 months) and 2024 (5 months) prior to the deconsolidation on May 31, 2024 and a mark-up invoiced by Horse since the deconsolidation (7 months in 2024).
Automotive free cash flow: cash flow after interest and taxes (excluding dividends received from listed companies) less tangible and intangible investments net of disposals +/- change in working capital requirement.
Excluding -€1,527m of capital loss on Nissan's shares disposal and -€694m of impairment of investment in Nissan.
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