Business outcomes
- 3 complementary and rising manufacturers:
- Worldwide Group’s gross sales up 9% versus 2022 to achieve 2, 235,000 models. In Europe[3], gross sales had been up 18.6% in a market up 13.9%.
- Renault is the best-selling French model on the planet, 2nd place within the European PC+LCV[4] market, chief within the European LCV[5] market, main place in France in PC and LCV. Clio grew to become the best-selling automotive in France in 2023, all gross sales channels mixed and is #3 in Europe.
- Dacia ranked 11th on the European PC + LCV market (+ 4 locations). Within the European PC market, Dacia joins the highest 10. The model confirms its 2nd place on the retail automobile market in Europe[6], its core market.
- Alpine gross sales had been up 22.1% versus 2022. The Alpine A110 maintains its place because the main two-seater sports activities coupé offered in Europe in 2023.
- A business coverage targeted on worth and already benefitting from the start of the unprecedented product offensive:
- Renault model gross sales in C-segment and above in Europe improved by 26% in comparison with 2022, due to the success of Arkana, Austral, Espace E-TECH Hybrid and Megane E-TECH Electrical. C & above segments represented 42% (+ 3 factors vs 2022) of Renault model gross sales combine in Europe in 2023.
- 65% of Group gross sales had been on the retail channel within the Group’s 5 foremost nations in Europe[7]. Renault model generated greater than half of its gross sales within the retail channel.
- A profitable electrification offensive:
- Renault model took the threerd place in Europe for electrified[8] passenger automotive with gross sales up 19.7% versus 2022. They accounted for 39.7% of the model’s PC gross sales in Europe (of which 11.3% EV). This pattern was supported by a 62% enhance in hybrid automobile (HEV) gross sales. Austral, Clio and Captur are among the many prime 10 best-selling hybrid automobiles in Europe.
- Dacia already began its clean electrification technique: Dacia Jogger Hybrid 140, on sale since January 2023, represents greater than 25% of Jogger orders and Dacia Spring, 100% electrical, held on to its place within the top-three European4 retail electrical automobiles gross sales.
- In 2023, Renault Group confirms it achieved its CAFE[9] targets (passenger automobiles and lightweight business automobiles) in Europe.
Monetary outcomes
The consolidated monetary statements of Renault Group and the corporate accounts of Renault SA at December 31, 2023 had been accredited by the Board of Administrators on February 14, 2024 beneath the chairmanship of Jean-Dominique Senard.
Group income reached €52,376 million, up 13.1% in comparison with 2022. At fixed alternate charges[10], it elevated by 17.9%.
Automotive income stood at €48,150 million, up 11.7% in comparison with 2022. It consists of 4.8 factors of adverse alternate charges impact (€2,068 million) primarily associated to the Argentinean peso and to a lesser extent to the Turkish lira devaluation. At fixed alternate charges1, it elevated by 16.5%.
- Quantity impact stood at +4.0 factors due to the business success of automobiles.
The 9% enhance in registrations interprets into 4 factors of quantity impact because of the decrease restocking throughout the dealership community in comparison with the tip of 2022. This enchancment on whole inventories is healthier than our goal of being under 500,000 models on the finish of the 12 months. - The value impact, optimistic by +7.4 factors, continued to be very sturdy and displays the Group’s business coverage targeted on worth over quantity, automobiles enrichment in addition to worth will increase to offset foreign money impact.
- The geographic combine impacted positively by +1.7 factors due to the sturdy gross sales efficiency in Europe.
- The product combine impact stood at +1.0 level primarily due to the success of Austral, Espace E-TECH Hybrid and LCVs. The success of Clio had a adverse impression on this merchandise as its common promoting worth is under the Group’s common promoting worth.
- Gross sales to companions had a optimistic impact of two.1 factors, supported by the manufacturing of the ASX (because the starting of the 12 months 2023) and Colt (since October 2023) for Mitsubishi Motors in addition to a dynamic LCV enterprise with Nissan, Renault Vans and Mercedes-Benz.
The Group posted a report working margin at 7.9% of income versus 5.5% in 2022, up 2.4 factors. It continued to enhance sequentially from 6.3% in 2022 H2 to 7.6% in 2023 H1 and eight.1% in 2023 H2. It stood at €4,117 million, up €1,547 million versus 2022.
Group working margin consists of, because the starting of November 2022 and till the deconsolidation of Horse, a optimistic non-cash impact of the cessation of amortization for these belongings held on the market. It accounted for €482 million in 2023 (€275 million in 2023 H1 and €207 million in 2023 H2). 12 months‑on‑12 months, it represented a optimistic impact of €398 million.
Adjusted from this optimistic impression, the Group working margin would have been 6.9% in 2023 with 6.6% in 2023 H1 and seven.3% in 2023 H2.
Automotive operating margin additionally reached a report degree at 6.3% of Automotive income in 2023, up 3.0 factors versus 2022. It stood at a report €3,051 million in 2023 versus €1,402 million in 2022.
- Automotive working margin was strongly impacted by a adverse foreign exchange of -€595 million primarily because of the Argentinean peso.
- The optimistic quantity impact at +€621 million and the optimistic combine/worth/enrichment impact of +€2,908 million illustrated the success of automobiles and of the business coverage targeted on worth. The optimistic combine/worth/enrichment impact greater than compensated the rise in prices. This enhance amounted to -€1,630 million and is principally defined by the impression of the carry-over of uncooked supplies and vitality worth will increase, logistics and labor prices.
- SG&A elevated by €389 million, primarily pushed by advertising prices due the continued product offensive and wage will increase.
- The value reevaluations in Argentina, computed within the Renault Group’s subscription plan within the nation, defined many of the +€376 million impact within the “others” merchandise.
The contribution of Mobilize Monetary Companies (Gross sales Financing) to the Group’s working margin reached €1,101 million versus €1,198 million in 2022[11] because of non-recurring impacts of the swaps valuation linked to the rate of interest enhance in Europe since starting 2022. Excluding this one-off, Mobilize Monetary Companies would have posted an working margin up 8% in comparison with 2022. This evolution was primarily pushed by the rise in new financings and decrease price of threat.
Different working revenue and bills had been adverse at -€1,632 million (versus -€379 million in 2022). This quantity was primarily pushed by -€0.9 billion of capital loss on the disposal of Nissan shares made in December 2023, -€0.5 billion of impairment on automobiles developments and particular manufacturing belongings and by restructuring prices. Capital acquire on asset disposals amounted to +€0.3 billion, associated to the sale of land in Boulogne-Billancourt, of a number of business subsidiaries of the Group and of branches of Renault Retail Group.
After considering different working revenue and bills, the Group’s working revenue stood at €2,485 million versus € 2,191 million in 2022 (+€294 million versus 2022).
Internet monetary revenue and bills amounted to -€527 million in comparison with -€486 million in 2022. The rise is defined by the impression of hyperinflation in Argentina partially offset by the optimistic impression of the rise in rates of interest on the web money place.
The contribution of related firms amounted to €880 million in comparison with €423 million in 2022. This included €797 million associated to Nissan’s contribution.
Present and deferred taxes represented a cost of -€523 million, secure in comparison with 2022 (-€524 million in 2022). The rise within the pre-tax revenue, associated to the development in efficiency, was offset by the evolution of deferred taxes.
Thus, internet revenue stood at €2,315 million, up €3,031 million in comparison with 2022 and internet revenue, Group share, was €2,198 million (or €8.11 per share). As a reminder, in 2022, internet revenue from discontinued operations amounted to -€2,320 million because of the non-cash adjustment associated to the disposals of the Russian industrial actions.
The money move of the Automotive enterprise was at report degree in 2023 and reached €5,485 million, up €667 million versus 2022. It consists of €600 million of Mobilize Monetary Companies dividend versus €800 million in 2022. This money move considerably greater than lined the tangible and intangible investments earlier than asset disposals which amounted to €2.9 billion (€2.6 billion internet of disposals) and the restructuring bills (€0.5 billion).
Excluding the impression of asset disposals, the Group’s internet CAPEX and R&D stood at €3,817 million in 2023, representing 7.3% of income in comparison with 7.4% of income in 2022. It amounted to six.7% together with asset disposals.
Free money move[12] reached a report degree at €3,024 million. Excluding Mobilize Monetary Companies dividend, it stood at €2,424 million versus €1,319 million in 2022, up €1,105 million. The change in working capital requirement was optimistic at €637 million and is principally associated to the lower in inventories.
As of December 31, 2023, whole inventories of latest automobiles (together with the impartial seller community) represented 484,000 automobiles, higher than our goal, and in comparison with 569,000 automobiles on the finish of June 2023 and 480,000 automobiles on the finish of December 2022.
The Automotive internet monetary place stood at €3,724 million on December 31, 2023 in comparison with €549 million on December 31, 2022, an enchancment of €3,175 million. In 2023, it included the next operations:
- €764 million similar to the sale of 211,000,000 Nissan shares held in a French belief, applied as per new Alliance Settlement;
- €200 million representing a 24% fairness stake funding in Alpine Racing Ltd (United Kingdom) by Otro Capital, RedBird Capital Companions and Most Effort Investments.
The mortgage of a banking pool benefiting from the assure of the French State (PGE) is now totally reimbursed (one 12 months upfront).
Liquidity reserve on the finish of December 2023 stood at a excessive degree at €17.8 billion, up €0.1 billion in comparison with December 31, 2022.
Capital allocation
Renault Group intends to share worth creation with its stakeholders by an worker shareholding plan and thru its dividend.
Renaulution worker shareplan
Since 2022, Renault Group is taking steps to extend the share of staff in its capital to achieve 10% by 2030.
In 2023, greater than 95,000 staff benefitted from 8 free shares. Amongst them, practically 38,000 additionally subscribed to shares at a preferential worth of 26.28 euros per share. In whole, with practically 2.1 million further shares held by staff, this second Renaulution Shareplan operation represented 0.7% of Renault Group’s capital.
Staff maintain 5.07% of the capital at December 31, 2023.
Dividend
The proposed dividend for the monetary 12 months 2023 is €1.85 per share, up €1.60 per share versus final 12 months. The payout ratio is 17.5% of Group consolidated internet revenue – father or mother share[13]. It might be paid totally in money and can be submitted for approval on the Annual Normal Assembly on Could 16, 2024. The ex-dividend date is scheduled on Could 22, 2024 and the cost date on Could 24, 2024.
As introduced throughout its Capital Market Day, the dividend coverage will step by step develop, in a disciplined method, as much as 35% payout ratio of Group consolidated internet revenue – father or mother share, within the mid-term. To take action, the Group should obtain its first precedence: return to an “funding grade” ranking.
2024 Outlook
2024 product offensive and the acceleration of price discount would be the drivers of operational efficiency and powerful money technology:
- Product launches: 2024 can be a historic 12 months with 10 new automobiles launches[14]
- Renault model: 7 new automobiles launches[15]:
- 2 new all-electric automobiles with Scenic E-TECH electrical, providing greater than 600 km of WLTP vary, and Renault 5 E-TECH electrical – all-electric pop icon
- 2 new hybrid automobiles in Europe, together with Rafale E-TECH
- New Renault Grasp (ICE and all-electric variations)
- 2 new automobiles in markets outdoors Europe: Kardian and a Renault Korea Motors automobile
- In 2024, the Renault model will proceed to roll out the “Worldwide Sport Plan 2027”. After Brazil and Turkey in 2023, this 12 months can be highlighted by the deployment of the plan in Morocco and South Korea
- Dacia:
- New Dacia Duster on sale beginning March 2024
- The brand new 100% electrical Dacia Spring, with an all-new design, each exterior and inside, on sale in summer time 2024
- The model may even reveal Bigster, a C-segment automobile, on the finish of 2024
- Alpine:
- Alpine will proceed its worldwide deployment with its arrival in Turkey in H1 2024
- 2024 will mark Alpine’s shift into electrical. The model will current its electrical scorching hatch, the Alpine A290, its first all-electric automobile
- Renault model: 7 new automobiles launches[15]:
- Sooner price discounts and time-to-market:
- Discount of manufacturing prices per automobile by 30% for thermal automobiles and 50% for electrical automobiles between now and 2027, due to the Industrial Metaverse.
- This manufacturing price discount may even gas Ampere goal to cut back variable prices between the 1st and the twond technology of C-segment electrical automobiles by 40% by 2027+, following a steady trajectory.
In 2024, European and Latin America automotive markets are anticipated to be secure, and Eurasia is predicted to say no by 11%.
On this context, Renault Group is aiming to realize in 2024:
- A Group working margin ≥7.5%
- A free money move ≥€2.5bn
Renault Group’s consolidated outcomes
Horse accounting impacts
No impression from Horse on free money move for 2022 and 2023.
Extra info
The consolidated monetary statements of Renault Group and the corporate accounts of Renault SA at December 31, 2023 had been accredited by the Board of Administrators on February 14, 2024.
The Group’s statutory auditors have carried out an audit of those monetary statements and their report can be issued shortly.
The earnings report, with a whole evaluation of 2023 monetary outcomes together with condensed monetary accounts, is obtainable at www.renaultgroup.com within the “Finance” part.
2023 Monetary Outcomes Convention
Hyperlink to observe the convention at 8am CET on February 15th, and obtainable in replay: occasions.renaultgroup.com/en/
[1] The 2022 figures embrace restatements following the primary utility of IFRS 17 “Insurance coverage contracts” in 2023.
[2] 10 new automobiles launches in 2024 with out Renault Duster (outdoors Europe) and Captur facelift.
[3] ACEA European Scope.
[4] PC+LCV: passenger automotive + mild business automobile.
[5] Excluding pickup vans.
[6] Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom.
[7] France, Germany, Spain, Italy, United Kingdom.
[8] Contains EV, Hybrid (HEV) and Plug-In Hybrid (PHEV), excludes Delicate-Hybrid (MHEV).
[9] The official outcomes can be launched by the European Fee within the coming months. CAFE = Company Common Gas Financial system.
[10] In an effort to analyze the variation in consolidated income at fixed alternate charges, Renault Group recalculates the income for the present interval by making use of common alternate charges of the earlier interval.
[11] The 2022 figures embrace restatements following the primary utility of IFRS 17 “Insurance coverage contracts” in 2023.
[12] Free money move: money move after curiosity and taxes (excluding dividends acquired from listed firms) much less tangible and intangible investments internet of disposals +/- change in working capital requirement.
[13] Excluding €880m of capital loss on Nissan shares disposal.
[14] 10 new automobiles launches in 2024 with out Renault Duster (outdoors Europe) and Captur facelift.
[15] 7 new automobiles launches for Renault Model in 2024 with out Renault Duster (outdoors Europe) and Captur facelift.
SOURCE: Renault Group
