by Gilles Guillaume
PARIS (Reuters) – Renault on Thursday raised its financial targets for the current year thanks to demand for its new family models, the Austral SUV and the Dacia Jogger station wagon in the lead.
The diamond group, which has been engaged for several years in a profound restructuring and a strategic repositioning to restore its margins, is now aiming for an operating margin of between 7% and 8% for 2023, against a previous objective greater than or equal to 6%.
“This revision is mainly explained by the quality of the sales mix (of) in connection with the success of the new launches and the continuation of the commercial policy focused on value,” the French automaker said in a press release.
Renault is also counting on an operating free cash flow from the automotive industry greater than or equal to 2.5 billion euros this year, against a previous target greater than or equal to two billion.
On the Paris Stock Exchange, Renault shares climbed 4.18% to 37.98 euros in the first exchanges, signing by far the best performance of the CAC 40, up 0.22% at the same time.
Outpaced so far by several other automobile groups, in particular its compatriot PSA – today Stellantis – which constantly posts a two-digit margin, Renault has refocused on its most profitable markets and models, in particular on the size segment. intermediate.
“This product offensive (…) unprecedented in the history of the group (…) has only just begun and will further improve the group’s performance,” said CEO Luca de Meo quoted in the press release.
During a press conference call, Chief Financial Officer Thierry Piéton added that Renault’s ambition was to continue to catch up with the best of its competitors, whether traditional manufacturers or pure electric players. , making an unnamed reference to Tesla.
NEW H1 RECORDS
Renault will publish its half-year results on July 27, which it believes should break new records with an operating margin of over 7% and automotive operating free cash flow of around 1.5 billion, a forecast that includes 600 million euros in dividends from the financing subsidiary Mobilize Financial Services.
The next two and a half years will be marked by no less than 18 other launches, including the Rafale coupé, the electric Scenics, Renault 5 and Alpine A290 or the Dacia Bigster SUV, big brother of the Duster, one of the best-selling of the group.
All of these new features help Renault increase its average selling prices, in line with its strategy of giving priority to value over volume.
To modernize its image and get back into the electrification race, the manufacturer has also announced the creation of an entity dedicated to electrical and software, which will open up to external partners during an IPO for which the most favorable window is located in the first half of 2024, said Thierry Piéton.
Nissan is to take a stake of up to 15%, but the final agreements on the restructuring of the alliance have not yet been signed, Renault’s Japanese partner having been agitated at its summit by a power battle and persistent divisions on the interest of an investment in this “Ampère” entity of Renault.
“We are working on finalizing the agreements and the closing is expected in the fourth quarter,” added Thierry Piéton.
(Gilles Guillaume report, edited by Jean Terzian)
Copyright © 2023 Thomson Reuters
Are you following this action?
Receive all information about RENAULT in real time: