New Records in Profitability
Renault Group has achieved a record profitability with an operating margin of 8.1% from revenues, marking an increase of 0.5 percentage points compared to the first half of 2023. The automotive segment reached an operating margin of 6.6%, up by 0.4 percentage points. Total group revenues hit €27 billion, reflecting a growth of 0.4% at constant exchange rates.
Automotive Segment Results
The automotive sales amounted to €24.4 billion, which is a slight decline of 1.9% at constant exchange rates. Nevertheless, the automotive segment boasts a record financial position with net cash standing at €4.9 billion as of June 30, 2024.
Key Brands and Their Achievements
The Renault brand ranked third in Europe and first in France, leading in the light commercial vehicle segment. Dacia was among the top ten best-selling brands in Europe, with the Sandero model becoming the best-seller across all sales channels. The Alpine brand recorded double-digit growth ahead of planned new market launches.
Strong Orders and Healthy Inventory Levels
Renault Group boasts a strong order book in Europe with 2.6 months of pre-sales, reflecting high demand for its products. Total inventory levels were healthy at 500,000 units as of June 30, 2024, representing a decrease of 69,000 units compared to the previous year.
Outlook for the Future
Renault Group has confirmed its financial outlook for 2024 with a target to achieve an operating margin of at least 7.5% and free cash flow of at least €2.5 billion. CEO Luca de Meo emphasized the importance of the company's transformation and its focus on flexibility, agility, and innovation.
"These record results are the outcome of significant efforts by Renault Group teams over recent years. Our drive to reduce costs and focus our commercial policy on value is reflected in a new offer that is the best in three decades. Our people are fully committed to this transformation, delivering sustainable value for all our stakeholders," said Luca de Meo.