Revenue from the global finance operation of RCI Banque, captive finance provider to the Renault Group, was down in 2012 but not by the same margin as revenue or net income for the Group.

Revenue from sales financing by RCI Banque totalled €754m (£659m) in 2012, down 0.92% year-on-year. This continues the trend of finance outperforming sales, including in the UK, reported by the Group during 2012.

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Cost of risk for Group outstanding finances was 0.38% in 2012, up from the historic low of 0.23% in 2011 but still below that of recent years.

Revenue and income

Overall Group revenue was down 3.19% year-on-year to €41.27bn in 2012, with net income down 18.89% to €1.74bn.

Overall operating income shrank to an approximate tenth of its 2011 level at €122m. The Group attributed the contraction to the devaluation of the Iranian rial, Iran being a market accounting for 3.95% of total Renault vehicle sales in 2012, plus the write-off of several vehicle lines and restructuring costs for the Group: The last two of which were evident througout the Renault network in the UK in 2012.

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However, finance and overall Group performance were in better shape than the automotive segment which went from earning €330m for the group in 2011 to costing €25m in 2012.

Elimination of debt and plans for 2013

Despite this, Renault Group reported an operational free cash flow of €597m, in the black for the fourth year in a row. Combined with the sale of the Group’s remaining stake in Volvo in December, Renault has eliminated its net debt and is, overall, in net profit for the first time since the formation of the Renault-Nissan Alliance in 1999.

Renault expects the European car market to contract by 3% in 2013 and the French market, where 21.62% of Renault sales were made in 2012, to contract by between 3 and 5% in 2013. As such, the brand will hope to grow European market share with four product launches, including the ZOE, plus the launch of the Sandero from Romanian subsidiary brand Dacia and the Clio IV at the end of 2012,as well as a sustainable pricing policy.

The Group also expects positive worldwide automotive growth of 3% in 2013, including India by 11%, Russia, where 7.44% of Renault vehicles were sold in 2012, by 5% and Brazil, where 9.47% were sold, by 1.5%.

Further data and comment regarding manufacturer full-year results will be published in the March issue of Motor Finance magazine.

richard.brown@timetric.com