StrongBeginning oftheYear Markedby a 30% Boost in Q1 Revenue
Renault Group has announced impressive financial results for the first quarter of 2023, with automotive revenue reaching €10.5 billion, marking a 29.7% increase compared to the same period last year. This growth can be attributed to a strong volume effect, a robust price effect, an increasing product mix effect, a geographic mix, and a positive impact of sales to partners.
In Europe, Renault Group sales surged by 27.3%, outpacing the market growth of 16.2%. The Renault brand saw a near 20% increase in sales, amounting to nearly 230,000 vehicles. Dacia, on the other hand, recorded a significant 41% growth, with sales reaching nearly 150,000 units. The Dacia Sandero took the top spot in retail sales, while the Duster remained on the podium of SUVs sold to retail customers.
The success of the group can be attributed to the renewal of its range, including the Arkana, Megane E-TECH Electric, Austral for the Renault brand, and Jogger for the Dacia brand. The C-segment saw growth of over 51% due to the success of these new models.
Group revenue for the first quarter of 2023 amounted to €11.5 billion, a 29.9% increase compared to 2022 Q1. However, the growth in Group inventories at 273,000 vehicles is primarily due to logistics issues. Independent dealer inventories stood at 307,000 units, in line with the orderbook which remains at record levels in absolute value. At March 31, 2023, total inventories (including the independent network) represented 580,000 vehicles.
Average performing assets (€49.4 billion) increased by 13% compared to 2022 Q1, supported by vehicle restocking in the dealerships and a 17.4% increase in new financing for the retail business. The increase in Mobilize Financial Services revenue is due to higher interest rates and the increase of new contracts coupled with higher average amount financed. Mobility Services contributed €9 million to 2023 Q1 revenue compared to €8 million in 2022 Q1.
Renault continues to successfully develop its sales in value-creating segments, maintaining its leading position in the electrified market with a 24% increase in sales. The group confirms its 2023 FY financial outlook with a Group operating margin superior or equal to 6% and an Automotive operational free cash flow superior or equal to €2 billion.
The Renault Group focused most on vehicle sales through the retail channel in France, Spain, and Italy in the first quarter of 2023. The consolidated revenue at constant scope and exchange rates is being analyzed for the current financial year. The top 15 markets at the end of March 2023 exclude sales of Twizy.
Mobilize Financial Services (formerly RCI Bank and Services) posted revenue of €974 million in 2023 Q1, up 32.2% compared to 2022 Q1. The group remains optimistic about its future performance, with a robust portfolio of new models and a commitment to sustainable mobility solutions.
