Renault makes a profit of 1.4 billion in the first half of the year

Renault Group closed the first half of the year with overall positive results. Group sales amounted to 27 billion euros, with 24.4 billion generated by the Automotive sector, an increase of 1.2% compared to H1 2023. Net profit amounted to 1.4 billion euros, with profitability setting a new record.

The Renault Group's operating margin currently stands at 8.1% of sales (up 0.5 percentage points compared to the first half of 2023) and that of the Automotive division at 6.6% of sales (up 0.4 points compared to the first half of 2023). Thanks to the strong operating performance, free cash flow amounted to EUR 1.3 billion. This includes a dividend of EUR 600 million from Mobilize Financial Services and reduced working capital requirements of EUR 209 million.

"Our efforts to reduce costs and focus our business policy on earnings are reflected in our new organizational structure, the best this company has had in the past three decades," commented Renault Group CEO Luca de Meo on the results. "We have used the traditional levers to improve performance, but we have also reconnected the company with the innovative mindset that once characterized its golden years."

In terms of sales figures, the Renault brand is currently number 3 in Europe and number 1 in France with 535,238 vehicles sold at the reporting date. The Romanian subsidiary Dacia ranks among the top 10 in Europe with 309,816 vehicles. The Renault Group's order backlog in Europe is said to correspond to 2.6 months of sales. (aum)