Industria
Renault Group: 21% Revenue Growth year-to-date driven by disciplined commercial policy and product offensive in Europe
RG_2023Q3 Revenue_PR_GB Vfinal
21% Revenue Growth year-to-date driven by disciplined commercial policy and product offensive in Europe
Renault Group expects a Group operating margin in H2 above H1, which was at 7.6%.
“Renault Group achieved again a strong performance in the third quarter with total revenue increasing by 13.8% at constant exchange rates. We have entered the last quarter with confidence and confirm the improvement of our profitability in the second half of the year and beyond, driven by our product offensive, along with the benefits of our cost reduction program and our disciplined commercial policy focused on value.
In the meantime, we are moving fast forward on all our Revolution projects and this quarter was very active. We officially launched Horse and signed the JV agreement with Geely. Ampere carve-out will occur in November and we will present in detail its strategy during a Capital Markets Day on November 15 . We also announced the Flexis Project together with Volvo Group and CMA CGM, a true game changer to tackle the challenges of electrifying LCVs in the urban logistics sector. We are progressively building our next-gen automotive company.
Finally, following the signature of the Alliance definitive agreements in July, we confirm that the completion of the transaction is expected by the end of the year, as planned. This will create additional value through common operational projects and give Renault Group the opportunity to optimally reallocate part of its capital. " said Thierry Piéton, Chief Financial Officer of Renault Group .
Boulogne-Billancourt, October 19, 2023
Commercial results: Third quarter highlights
Worldwide Group's sales reached 511,000 vehicles in 2023 Q3, up 6.1% compared to 2022 Q3. In Europe, sales were up 15.3%.
Continued high price effect at 7.5 points over the quarter:
Renault Group pursues its electrification offensive :
Third quarter revenue
Group revenue for 2023 Q3 amounted to €10.5 billion, up 7.6% compared to 2022 Q3. At constant exchange rates , Group revenue was up 13.8%.
Automotive revenue reached €9.4 billion, up 5.0% compared to 2022 Q3, or +11.3% at constant exchange rates. The negative exchange rates effect of -6.3 points is mostly linked to the Argentinean peso devaluation and to a lesser extent to the Turkish lira.
The rest of the variation is explained by the following:
Mobility Services contributed €11 million to 2023 Q3 revenue compared to €9 million in 2022 Q3.
Mobilize Financial Services posted revenue of €1,102 million in 2023 Q3, up 36.4% compared to 2022 Q3 due to higher interest rates and to the increase of new contracts coupled with higher average amount financed per unit. Average performing assets (€52.1 billion) increased by 15.6% compared to 2022 Q3. This is supported by vehicle restocking in the dealerships and by a 15.9% increase in new financing for the retail business.
As at September 30, 2023, total inventories (including the independent network) decreased to 542,000 vehicles with:
The decrease compared to 569,000 units at the end of June 2023 is in line with the objective of being below 500,000 vehicles at the end of the year.
The level of inventories is in line with the orderbook which remains at 2.5 months of forward sales at the end of September.
2023 FY financial outlook
Renault Group confirms its 2023 FY financial outlook with:
Renault Group expects a Group operating margin in H2 above H1, which was at 7.6%.
Renault Group's consolidated revenue
The 2022 figures include restatements following the first application of IFRS 17 "Insurance contracts".
Renault Group's top 15 markets at the end of September 2023
Sales excluding Twizy
Total Renault Group PC + LCV sales by brand
Mobilize , Jinbei & Huasong and Eveasy sales until July 2023
About Renault Group
Renault Group is at the forefront of a mobility that is reinventing itself. 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 2.1 million vehicles in 2022. 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.
https://www.renaultgroup.com/en/
The 2022 figures include restatements following the first application of IFRS 17 "Insurance contracts".
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 .
Retail private vehicles in Europe =
Austria , Belgi um , Croati a ,
Czech Republic, Denmark, Finland , France, Germany, Hungary, Italy , Luxembourg,
Netherlands, Norway, Poland , Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
Passenger cars in France, Germany, Spain, Italy, United Kingdom.
Includes EV, Hybrid (HEV) and Plug-In Hybrid (PHEV), excludes Mid-Hybrid (MHEV) .
In order to analyze the change in consolidated revenue at constant exchange rates, Renault Group recalculates revenue for the current financial year by applying the average exchange rates of the previous period .
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