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Renault Group* said today that its in-depth transformation and turnaround of its activities continued during the first half of 2022. “These first half results are a proof of this: despite all the headwinds related to the stop of the activity in Russia, the semiconductor crisis and cost inflation, the Group continues to improve its operating performance and is beginning to benefit from the success of new launches,” Renault Group said.
Renault Group also “upgraded” its 2022 full-year financial outlook**. In the fall, new mid-term financial outlook and the accelerated roll-out of the so-called Renaulution will be presented during its Capital Market Day. “All our energies are mobilized to transform Renault Group into a competitive, tech and sustainable player,” said Luca de Meo, CEO of Renault Group.
Renault Group First Half 2022 Exec Summary
- 2022 H11 results, a new step in the Group’s turnaround: significant improvement in profitability, strong free cash flow generation and strengthening of the financial structure
- Group revenue at €21.1 billion, stable compared to 2021 H1, despite 11.9% decline in the Group’s global sales over the period, in a still disrupted market
- Group operating margin at €988 million (4.7% of revenue): up €556 million and +2.6 points compared to 2021 H1
- Automotive operating margin at €420 million (2.1% of Automotive revenue): +€565 million (+2.8 points) despite a decrease of 136,000 vehicles compared to 2021 H1
- Net income from continuing operations at €657 million, up €458 million compared to 2021 H1
- Net income from discontinued operations at -€2.3 billion due to the non-cash adjustment related to the disposal of the Russian industrial activities announced on May 16, 2022
- Automotive operational free cash flow at +€956 million (including a €800 million dividend from Mobilize Financial Services) up €1,470 million compared to 2021 H1
- Automotive net debt reduced by €1.2 billion versus December 31, 2021, of which €522 million related to the sale of activities in Russia: -€426 million
New Vehicles And Strategy Focused On Value
- Group order book in Europe at 4.1 months of sales, supported by the success of new launches:
- Renault Arkana recorded more than 100,000 orders since its launch, 60% of which are in E-TECH version and 60% on the retail channel
- Renault Megane E-TECH Electric is experiencing a promising launch with already more than 25,000 orders, 75% of which are on the highest versions and 80% on the most powerful engines. The first vehicles arrived in French dealerships mid-May; its launch in European countries is underway and will continue until September
- Dacia Sandero remains the best-selling vehicle to retail customers in Europe
- With more than 30,000 orders recorded in 2022 H1, Dacia Spring 100% electric is
number 1 electric vehicle sold to retail customers in France
- Dacia Jogger promises to be a new success with more than 50,000 orders in 6 months and a mix of more than 60% on high-end versions in Europe
- Alpine doubled its orders versus 2021 H1 thanks to the success of its new A110 range
- Product mix effect of +3.3 points on the Automotive revenue versus 2021 H1 thanks to new launches (Arkana, Jogger and Megane E-TECH Electric)
- Performance of E-TECH sales2that continue to grow, representing 36% of the registrations of Renault brand passenger cars in Europe (vs. 26% in 2021 H1)
- Acceleration of the pricing effect, which reached +7.4 points of the Automotive revenue versus 2021 H1. This effect will continue in H2 thanks to the Renaulution commercial policy
- Impact of raw materials price increases and cost inflation more than offset by the benefits of this new commercial policy coupled with the Group’s productivity
*Renault Group includes Alpine, Dacia, Mobilize, Renault. It is linked with Nissan and Mitsubishi
**FY Financial Outlook Changed
- a Group operating margin superior to 5% versus around 3% previously
- an Automotive operational free cash flow superior to €1.5 billion versus positive previously
- The Group confirms an impact of the semiconductor crisis estimated at 300,000 vehicles in 2022.
Inevitable Renault Group Footnotes
- The results presented relate to continuing operations (excluding Avtovaz and Renault Russia whose disposals were announced on May 16, 2022)
- The E-TECH range consists of electric and hybrid vehicles
- 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.
- Automotive operating 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
- The results presented relate to continuing operations (excluding Avtovaz and Renault Russia whose disposals were announced on May 16, 2022)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Renault Group: Sales Drop, Revenues Even, Margins, Profits Up
Click to Enlarge.
Renault Group* said today that its in-depth transformation and turnaround of its activities continued during the first half of 2022. “These first half results are a proof of this: despite all the headwinds related to the stop of the activity in Russia, the semiconductor crisis and cost inflation, the Group continues to improve its operating performance and is beginning to benefit from the success of new launches,” Renault Group said.
Renault Group also “upgraded” its 2022 full-year financial outlook**. In the fall, new mid-term financial outlook and the accelerated roll-out of the so-called Renaulution will be presented during its Capital Market Day. “All our energies are mobilized to transform Renault Group into a competitive, tech and sustainable player,” said Luca de Meo, CEO of Renault Group.
Renault Group First Half 2022 Exec Summary
New Vehicles And Strategy Focused On Value
number 1 electric vehicle sold to retail customers in France
*Renault Group includes Alpine, Dacia, Mobilize, Renault. It is linked with Nissan and Mitsubishi
**FY Financial Outlook Changed
Inevitable Renault Group Footnotes
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.