(Boursier.com) — The group Renault published a turnover up 1.8% in the first quarter, to 11.707 billion euros, the highest in 5 years. The turnover of the automobile activity, however, fell by 0.7% under the effect of the devaluation of the Argentine peso, the success of more affordable models, the discontinuation of the Zoé and a destocking of dealers.
The French manufacturer’s volume sales, which returned to growth last year after four years of decline in a row, increased again by 2.6% to 549,099 vehicles.
The market consensus expected an almost stable turnover at 11.480 billion euros, the anticipated drop of 1.2% in automobile turnover being offset by a sharp increase in turnover from the vehicle financing activity. sales.
Remember that Renault, whose ambition is to join the club of manufacturers with double-digit margins at the end of the decade, posted a record operating margin of 7.9% last year, compared to 5.5% in 2022. and 2.8% in 2021. The automobile group expects a margin “greater than or equal” to 7.5% in 2024.
Strong order portfolio
The group highlights the strong order portfolio in Europe which represents 2.5 months of forecast sales, “reflecting the success of the products and a very good start to the year in terms of order intake while key product launches are planned on the rest of the year”.
Renault Group is also continuing its commercial policy centered on value with a focus on sales to individual customers (66% of sales), on the C & higher segments (37% of sales), on high-end versions which represent a large majority of the latest launches and on electrification with hybrid and electric offers (48% of sales).
Renault Group thus confirms its 2024 financial outlook which includes a Group operating margin greater than or equal to 7.5% and free cash flow greater than or equal to 2.5 billion euros.
“The 1st quarter turnover continues to illustrate the strict application of our value-centered commercial policy. The high level of the order portfolio at the end of March as well as our upcoming launches will enable the sequential acceleration of activity. Combined with increased cost reduction, they will be the levers of our financial performance Renault Group has already opened a new chapter with robust fundamentals: improving performance and efficient allocation of capital on the one hand and flexibility. on the other, our launches of both electric vehicles and thermal and hybrid vehicles demonstrate our flexibility to adapt to fluctuations linked to the energy transition. Day after day, our organization gains in agility and speed of execution. , key assets in the current environment”, declared Thierry Piéton, Chief Financial Officer of Renault Group.