Renault Group’s financial results for the first half of 2024 underscore a record-breaking performance, driven notably by the robust contribution from Mobilize Financial Services.
The sales financing arm of the Group contributed €593 million to the Group’s operating margin, marking an increase of €75 million from H1 2023. This boost was mainly due to strong customer financing growth and the absence of negative impacts from swaps valuation that affected the previous year’s results.
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Mobilize Financial Services is the finance company for four major UK brands: Renault, Dacia, Nissan, and Alpine. It operates as the commercial brand of RCI Banque SA, a French bank specialising in automotive financing and services for Alliance customers and dealers. RCI Banque is a subsidiary of Renault Group.
Key Financial Highlights:
- Group Revenue: Totaled €27.0 billion, a 0.4% increase compared to H1 2023, and a 3.7% rise at constant exchange rates.
- Automotive Revenue: Reached €24.4 billion, down 1.9% from the previous year but up 1.2% at constant exchange rates.
- Group Operating Margin: Improved to 8.1% of revenue, up by 0.5 points, resulting in an additional €0.1 billion.
- Automotive Operating Margin: Increased to 6.6% of revenue, a rise of 0.4 points.
- Net Income: Stood at €1.4 billion, despite a €440 million capital loss from the sale of Nissan shares.
- Free Cash Flow: Recorded at €1.3 billion, driven by strong operational performance and a €600 million dividend from Mobilize Financial Services.
- Automotive Net Cash Position: Achieved a record €4.9 billion as of June 30, 2024, up €1.1 billion from December 31, 2023.
Group Highlights:
- Renault Brand: Ranked third in Europe and first in France, leading the Light Commercial Vehicles (LCVs) segment.
- Dacia: Maintained its position among the top 10 best-selling brands in Europe, with the Sandero being the best-selling car across all channels.
- Alpine: Showed strong double-digit growth ahead of upcoming new launches.
- Order Book and Inventory: Maintained a strong order book in Europe with 2.6 months of forward sales and healthy total inventories at 500,000 vehicles, a decrease of 69,000 units year-over-year.
CEO Statement:
Luca de Meo, CEO of Renault Group, credited the record results to strategic cost reductions and a focus on value-driven commercial policies. He highlighted the Group’s transformation towards becoming a progressive European automotive company, driven by flexibility, agility, and innovation. Initiatives such as the “speed of lightness” program, AI deployment across value chains, and the strengthening of the supply chain are pivotal to this transformation.
Financial Outlook for 2024:
Renault Group reaffirmed its financial outlook for the full-year of 2024, targeting a Group operating margin of at least 7.5% and free cash flow of at least €2.5 billion.
Mobilize acquires stake in Select Car Leasing
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