Half Year Results in 2023 - Exceptional Profitability and Unrestricted Cash Flow
Renault Group Reports Strong First-Half Results for 2023
Renault Group has announced its financial results for the first half of 2023, revealing a robust performance across various key metrics. The Group's financial report is now available on the corporate website for public scrutiny.
The Group's revenue reached a significant milestone, with €26,849 million recorded in the first half of the year, marking a 27.3% increase compared to the same period in 2022. This growth was mirrored in the Group's vehicle sales, which saw a 13% increase, with 1,134,000 vehicles sold worldwide.
The Renault brand specifically experienced a near 12% growth, with more than 772,000 units sold. Dacia, another brand under the Renault umbrella, recorded sales up by 24%, selling over 345,000 units worldwide.
Renault's Megane E-TECH Electric and Austral models also contributed to the Group's success. The Megane E-TECH Electric recorded 23,000 sales in the first half of the year, with 70% of sales on high trim versions and more than 80% on the most powerful engine. The Renault Austral, on the other hand, recorded almost 40,000 sales, with 65% of sales being hybrid mix and 60% of sales on high trim versions.
The Group's operating margin, adjusted for one-off items, would have been 6.6% in 2023 H1. However, the Group posted a record operating margin at 7.6% of revenue in the same period. This impressive margin was reflected in the Group's financial position, with the Automotive net financial position standing at €2,185 million on June 30, 2023.
The cash flow of the Automotive business also reached a record level in 2023 H1, amounting to €3,292 million. This strong cash flow enabled the Group to make a €1 billion repayment for the last repayment of a loan from a banking pool in the first half of 2023.
Despite a slight decrease in inventories compared to 2023 Q1, which was at 580,000 units, the Group's liquidity reserve stood at €16.8 billion at the end of June 2023. This decrease in inventories is attributed to continuing tensions on downstream logistics.
Looking forward, Renault Group expects a free cash flow superior or equal to €2.5bn in 2023 FY. The Group also confirms its 2023 FY financial outlook with a Group operating margin between 7% and 8%.
In other news, the companies ZF and Wolong have signed a joint venture agreement in July 2023. This collaboration aims to establish a leading manufacturer for drive technology, with the goal of advancing the production and innovation in electric and hybrid drive systems.
The first half of 2023 has been a successful period for Renault Group, and the company looks forward to continuing this momentum in the second half of the year. The Group's statutory auditors have conducted a limited review of the first half of 2023 financial statements, providing an assurance of the Group's strong performance.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Unchecked carbon emissions could potentially lead the world to revert to coal usage, according to a knowledgeable source.
- Discusses Rasmus Sojmark's thoughts on the Legends Charity Game before SBC Summit
