Renault Group: 21% Revenue Growth year-to-date driven by
disciplined commercial policy and product offensive in Europe
Press Release October 19, 2023 |
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RG_2023Q3 Revenue_PR_GB Vfinal
21% Revenue Growth year-to-date
driven by disciplined commercial policy and product offensive in
Europe
-
2023 9-months:
- Group revenue at €37.4 billion,
+21.1% vs 2022 9m1, +25.3% at constant exchange
rates2
- Auto revenue at €34.2 billion,
+20.1% vs 2022 9m1, +24.2% at constant exchange
rates2
- Group registrations up 10.9% globally
and 21.3% in Europe
-
2023 Q3:
- Group revenue at €10.5 billion,
+7.6% vs 2022 Q31, +13.8% at constant exchange rates2
- Auto revenue at €9.4 billion,
+5.0% vs 2022 Q31, +11.3% at constant exchange rates2
- Group registrations up 6.1% globally
and 15.3% in Europe
- Continued strong price effect
at 7.5 points over the quarter
-
Europe orderbook remains very healthy at 2.5
months of forward sales at the end of September
-
2023 guidance confirmed:
- a Group operating margin between 7% and 8%
- a free cash flow superior or equal to
€2.5 billion
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 15th. 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.
- Revolution
projects – latest developments:
- Horse (dedicated
entity for advanced low-emission ICE and hybrid powertrains):
- Carve-out effective
on July 1st, 2023.
- Signing of a JV
binding agreement on July 11th, 2023 with Geely, enabling the
deconsolidation of Horse and the start of the new JV upon
closing.
-
Ongoing discussions with Aramco.
- Ampere:
- Carve-out effective
in November 2023.
-
Capital Markets Day on November 15th, 2023.
-
Targeting the best window for an IPO, most probably in 2024
H1.
- Flexis project:
- Binding agreements
signed by Renault Group and Volvo Group to launch a new company
(initial 50-50 equity stakes) to pioneer and lead the e-LCV
European market with an all-new generation of fully electric
vans.
- CMA CGM Group would
join the new company.
- Expected closing of
the new company early 2024.
- Alliance:
- Definitive
agreements signed in July 2023. Completion of the transaction
expected in Q4, as planned. Once finalized, Renault Group will be
able to monetize the 28.4% of Nissan shares transferred to a
trust.
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%.
- Renault
brand global sales reached nearly 357,000 units, up 11.0% versus
2022 Q3. In Europe, Renault brand increased its sales by 24.8% to
223,000 units.
- In the
first nine months of 2023, Renault brand solidifies its position as
the second best-selling automotive brand in Europe, up 22.2% vs.
2022 and reaffirms its leadership in the French market both on the
PC market and on the LCV market.
- Renault
continues to outperform on the LCV market with 21.0% growth
worldwide on the 9 months and especially in Europe up 25.5%.
Renault is the European leader on the commercial vans market.
- Dacia
recorded 494,000 units worldwide up 16.7% over the first 9 months
2023. In 2023 Q3, Dacia sold 148,000 units globally, up 2.4% versus
2022 Q3.
- The 4
flagships of the Dacia posted increased sales over the first 9
months 2023: Spring +40.6%, Sandero +18.3%, Duster +4.1% and Jogger
+76.1%.
- In the
retail channel, Dacia maintains its 2nd place on the European
podium3 year-to-date.
- Alpine
recorded over 1,000 sales in 2023 Q3, up 31.0% versus 2022 Q3.
Continued high price effect at 7.5
points over the quarter:
- Focus on
retail with 64% of Group sales on retail channel
in the Group’s five main countries in Europe4.
- Renault
brand passenger cars sales in C & above
segments in Europe increased by 27% in 2023 Q3 versus 2022
Q3.
- Renault
Megane E-TECH Electric recorded 11,500 sales in total in 2023 Q3.
In the first 9 months, 70% of sales were on high trim versions and
80% on the most powerful engine. It represented 2.2% of the BEV
market in Europe.
- Renault
Austral recorded close to 21,000 sales in 2023 Q3. In the first 9
months, 65% of sales were hybrid and 60% of high trim
versions.
- Renault
Espace, launched in June 2023, has broadened the offer and recorded
nearly 2,400 sales. It will progressively hit new markets.
Renault Group pursues its
electrification offensive:
- Renault
brand recorded a 22% volume increase in electrified passenger5 car
sales in 2023 Q3 versus 2022 Q3, accounting for 43% of the brand’s
passenger car sales in Europe. Full electric vehicles represented
11% of the brand’s passenger car sales in Europe in 2023 Q3.
- This
momentum will continue to be supported by Espace E-Tech Hybrid and
the arrival of New Clio with a hybrid engine at the core of its
range. From 2024 onwards, Renault’s electric line-up will further
accelerate the dynamic, with Scenic E-Tech and Renault 5 in
particular.
- Dacia
Jogger Hybrid 140 represents 1 out of 4 of Jogger orders. Jogger is
a key product to attract new customer profiles and its hybrid
version supports Dacia smooth electrification strategy.
- Dacia
Spring (100% electric) recorded close to 16,000 sales in Europe in
2023 Q3. It was again on the podium of retail electric vehicles in
Europe being the most affordable BEV on the market.
Third quarter revenue
Group revenue for 2023 Q3
amounted to €10.5 billion, up 7.6% compared to 2022 Q3. At
constant exchange rates6, 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:
- A volume
effect of -1.6 points. The 6% growth in registrations was offset by
higher destocking in the independent dealers’ network in 2023 Q3
compared to 2022 Q3 and coming back to normal seasonal
evolutions.
- A
geographic mix of +3.1 points benefiting from a higher mix of
European sales.
- A still strong
price effect of +7.5 points, reflecting the continuation of the
commercial policy focused on value, price increases to offset
currency effect along with an optimization of commercial
discounts.
- A muted
product mix effect (-0,4 points), mainly resulting from a very
strong end of life of Clio phase 1 with a lower revenue per unit
than Renault Group’s average and a lower level of Megane E-tech
invoices this quarter in line with destocking, which offset the
positive impact of Austral and Espace.
- A
positive impact of sales to partners of +2.9 points, mainly
supported by a dynamic LCV market driving sales to Nissan, Renault
Trucks and Mercedes-Benz as well as from the production of the ASX
for Mitsubishi Motors.
-
An "Other" effect of -0.2 points. The decrease in the contribution
of sales from the Renault Retail Group network following the
disposals of branches was partially offset by the performance of
parts and services.
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:
- Group inventories
at 226,000 vehicles
- Independent
dealers’ inventories at 316,000 vehicles
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:
- a Group operating
margin between 7% and 8%
- a free cash flow
superior or equal to €2.5 billion
Renault Group expects a Group operating margin
in H2 above H1, which was at 7.6%.
Renault Group's consolidated revenue
(in million euros) |
2022 1 |
2023 |
Change 2023/2022 |
3rd quarter |
|
|
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Automotive |
8,950 |
9,394 |
+5.0% |
Mobility Services |
9 |
11 |
+22.2% |
Sales Financing |
808 |
1,102 |
+36.4% |
Total |
9,767 |
10,507 |
+7.6% |
9 months cumulated |
|
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Automotive |
28,524 |
34,244 |
+20.1% |
Mobility Services |
26 |
32 |
+23.1% |
Sales Financing |
2,306 |
3,080 |
+33.6% |
Total |
30,856 |
37,356 |
+21.1% |
1 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
|
Year to date September 2023 |
Volumes 1 |
PC + LCV |
(in units) |
market share |
|
(in %) |
1 |
FRANCE |
407,289 |
26.0 |
2 |
ITALY |
135,619 |
10.3 |
3 |
TURKEY |
120,953 |
14.1 |
4 |
GERMANY |
114,382 |
4.9 |
5 |
SPAIN+CANARY ISLANDS |
96,026 |
11.8 |
6 |
BRAZIL |
87,249 |
5.7 |
7 |
UNITED KINGDOM |
75,707 |
4.4 |
8 |
BELGIUM+LUXEMBOURG |
49,080 |
10.4 |
9 |
ROMANIA |
47,606 |
38.7 |
10 |
MOROCCO |
44,497 |
37.9 |
11 |
INDIA |
40,020 |
1.1 |
12 |
ARGENTINA |
39,383 |
11.8 |
13 |
POLAND |
35,609 |
8.9 |
14 |
MEXICO |
32,215 |
3.3 |
15 |
NETHERLANDS |
29,612 |
8.6 |
1 Sales excluding Twizy
Total Renault Group PC + LCV sales by brand
|
Third quarter |
9 months cumulated |
|
2022 |
2023 |
Change % |
2022 |
2023 |
Change % |
RENAULT |
|
|
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|
PC |
241 ,905 |
262,443 |
+8.5 |
780,744 |
847,481 |
+8.5 |
LCV |
79,511 |
94,304 |
+18.6 |
232,566 |
281,404 |
+21.0 |
PC+LCV |
321,416 |
356,747 |
+11.0 |
1,013,310 |
1,128,885 |
+11.4 |
RENAULT KOREA MOTORS |
|
|
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|
PC |
13,102 |
4,852 |
-63.0 |
38,387 |
17,060 |
-55.6 |
DACIA |
|
|
|
|
|
|
PC |
143,695 |
146,900 |
+2.2 |
419,219 |
489,492 |
+16.8 |
LCV |
992 |
1,224 |
+23.4 |
3,652 |
4,019 |
+10.0 |
PC+LCV |
144,687 |
148,124 |
+2.4 |
422,871 |
493,511 |
+16.7 |
ALPINE |
|
|
|
|
|
|
PC |
784 |
1,027 |
+31.0 |
2,492 |
2 887 |
+15.9 |
OTHERS1 |
|
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|
|
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PC |
1,370 |
1 |
- |
5,294 |
1,970 |
-62.8 |
LCV |
22 |
- |
- |
89 |
- |
- |
PC+LCV |
1,392 |
1 |
- |
5,383 |
1 ,970 |
-63.4 |
RENAULT GROUP |
|
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|
PC |
400,856 |
415,223 |
+3.6 |
1,246,136 |
1,358,890 |
+9.0 |
LCV |
80,525 |
95,528 |
+18.6 |
236,307 |
285,423 |
+20.8 |
PC+LCV |
481,381 |
510,751 |
+6.1 |
1,482,443 |
1,644,313 |
+10.9 |
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1 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/
RENAULT
GROUP INVESTORRELATIONS |
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Philippine de
Schonen+33 6 13 45 68 39philippine.de-schonen@renault.com
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RENAULT
GROUP PRESS RELATIONS
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Rie Yamane+33 6 03
16 35 20rie.yamane@renault.com |
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1 The 2022 figures include restatements following the first
application of IFRS 17 "Insurance contracts".
2 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.3 Retail private vehicles 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 Kingdom4 Passenger cars in France,
Germany, Spain, Italy, United Kingdom.5 Includes EV, Hybrid (HEV)
and Plug-In Hybrid (PHEV), excludes Mid-Hybrid (MHEV).
6 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.
- RG_2023Q3 Revenue_PR_GB Vfinal
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