Half-Year Earnings in 2023 - Achieving Unprecedented Profit Margins and Cash Reserves
Renault Group has announced its condensed half-year consolidated financial statements for the period ending June 30, 2023, which are now available on the corporate website. The financial results will be further discussed at the 2023 H1 Financial Results Conference, scheduled to stream at 8am CEST today.
The conference link and replay will be available at the 2023 H1 conference streaming.
The group reported a significant increase in its revenue volume, with a 27.3% jump to €26,849 million in the first half of 2023. This growth was driven by strong sales across various models, including the Renault Megane E-TECH Electric, which recorded 23,000 sales, with 70% on high trim versions and more than 80% on the most powerful engine.
The Renault Austral also performed well, with almost 40,000 sales in 2023 H1, with 65% of hybrid mix and 60% of high trim versions. Dacia sales increased by 24% to more than 345,000 units worldwide.
The Automotive net financial position stood at €2,185 million on June 30, 2023. The cash flow of the Automotive business reached a record level in 2023 H1 at €3,292 million. The group's net income stood at €2,124 million in 2023 H1, up €3,800 million compared to 2022 H1.
Renault Group's sales reached 1,134,000 vehicles in the first half of 2023, up 13% compared to 2022 H1. The Renault brand worldwide sales reached more than 772,000 units, almost a 12% increase from 2022 H1.
The group posted a record operating margin at 7.6% of revenue in 2023 H1, up 3.0 points from 2022 H1. However, the contribution of Mobilize Financial Services to the Group's operating margin decreased by €48 million compared to 2022 H1, reaching €518 million in 2023 H1.
The liquidity reserve at the end of June 2023 stood at €16.8 billion. Notably, Renault Group made a €1 billion repayment for the last mandatory annual repayment of a loan from a banking pool in the first half of 2023.
The level of inventories slightly decreased compared to 2023 Q1, which was at 580,000 units. Total inventories of new vehicles as of June 30, 2023, were 569,000 units.
Renault Group's 2023 FY financial outlook includes free cash flow superior or equal to €2.5bn. The group also anticipates a group operating margin between 7% and 8% for the full year of 2023.
The strong performance in the first half of 2023 sets a positive tone for the rest of the year for Renault Group. The company continues to focus on innovation, sustainability, and growth, with a commitment to delivering value to its customers, shareholders, and stakeholders.
